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Sun 26 Feb 2012 06:46 PM

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Dubai Financial Market sees net profit slump

Arab world's only listed bourse posts net profit of just $106,200 in Q4 amid fall in trading volumes

Dubai Financial Market sees net profit slump

Dubai Financial Market (DFM), the Arab world's only listed bourse, eked out a small fourth-quarter profit as it focused on new revenue streams and cut its dependency on commissions after a year of dwindling trading volumes.

DFM had a quarterly net profit of AED0.39m ($106,200), down from AED1.12m in the year-earlier period, according to Reuters calculations.

DFM Group, which includes Nasdaq Dubai, reported full-year revenues of AED176.5m on Sunday and a 2011 net loss of AED6.9m compared to a net profit of AED78.9m in 2010.

DFM index booked losses of 17 percent in 2011, making it the worse-performing Gulf bourse.

New revenue streams include real time data selling, listing fees, online advertising and cash dividend distribution on behalf of listed companies.

Essa Kazim, chief executive of DFM said in the statement that future plans for the bourse include short selling, market maker, trading covered warrants, trading rights issues and stock swap agreements.

Trading value last year through DFM was less than half of total turnover in 2010 and less than 10 percent of its pre-crisis level of AED379bn in 2007.

Shares in the firm rose 8.5 percent to 0.997 fils per share on Sunday, a 15-week high, ahead of the results announcement.

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