Dubai Financial Market outstrips analysts' expectations by making more than $58m in first three months
Dubai Financial Market, the Gulf Arab region's only listed bourse, said on Wednesday its first-quarter net profit jumped significantly, outstripping analysts' expectations.
The exchange made AED215.1 million ($58.6 million) in the opening three months of 2014, compared with AED27 million in the corresponding period of last year, it said in a statement.
Analysts at HSBC and Global Research expected a quarterly profit of AED202 million and AED109 million respectively.
Trading commissions are the main source of income for DFM, and trading activity rose sharply as the Dubai equity market recovered from the global financial crisis.
The value of traded securities jumped 429 percent during the first quarter of 2014 to AED110 billion, DFMsaid.
The company's total revenue increased 289 percent to AED255.6 million in the quarter. Operating expenses rose to AED40.5 million from AED38.7 million.
Dubai's stock market is one of the best performers in the world this year and DFM's main index rose 32 percent in the first quarter.
Index compiler MSCI will upgrade Dubai, as well as Abu Dhabi and Qatar, to emerging market status at the end of May, which has prompted increased interest from foreign investors.
Dubai's government, which has a majority stake in DFM, has long been in talks with neighbouring Abu Dhabiabout merging the two emirates' main bourses. A top Dubai economic policy maker said this month that such an agreement had been reached in principle but nothing had been finalised.