By Nivedita Gupta
Shuaa Capital maintains short- and long-term optimism for Dubai Financial Market citing 77% profit surge in '07.
Shuaa Capital maintained its short-term and long-term outlook for Dubai Financial Market (DFM) saying the company's 2007 results came in line with the investment bank's estimates in terms of operating profit.
In January, the bourse posted a 77% rise in 2007 profit at 1.412 billion dirhams, beating its own forecast and Shuaa's estimate.
DFM also proposed a 10% cash dividend of nominal share value yielding a payout ratio of 57%, in line with the investment bank's estimate of a 60% payout.
"This verifies DFM's high cash generating business and the consecutive streaming of these funds to its parent company, namely Borse Dubai, to help support its acquisition plans," Shuaa said in a note to clients.
Borse Dubai and the Nasdaq Stock Market should close a $4.9 billion deal this month to buy Nordic and Baltic stock exchange operator OMX. Under the tie-up, Borse Dubai gets Nasdaq's 28% stake in the London Stock Exchange. (Reuters)