Dubai Financial Market's Impressive 60% Profit Surge
Dubai Financial Market reports significant gains with a 60% increase in net profit, reflecting robust investor confidence and market performance.
Summary
Dubai Financial Market (DFM) has announced a remarkable 60% increase in net profit for the first nine months of 2024, driven by strong investor activity and market performance.
The Dubai Financial Market (DFM) has unveiled its financial results for the first nine months of 2024, showcasing a substantial 60% increase in net profit before tax, reaching AED 298.7 million. This impressive performance underscores the market's robust growth and investor confidence, both locally and internationally.
During this period, the DFM General Index surged by 10.9%, closing at 4,503.48 points, its highest since 2014. This growth outpaces regional markets, highlighting Dubai's burgeoning status as a financial hub. DFM's total consolidated revenues rose by 29% to AED 460.3 million, driven by increased trading activity and investment returns.
Trading activity on the DFM was vibrant, with the total number of trades reaching 1.7 million, marking a 20% year-on-year increase. However, it's noteworthy that the total trading value declined by 6% to AED 72.7 billion. Despite this, the market capitalization of DFM-listed companies reached AED 757 billion, reflecting the exchange's strong market position.
H.E. Helal Saeed Al Marri, Chairman of DFM, emphasized the confidence that investors have in Dubai's financial ecosystem, attributing the market's growth to the city's appeal as a global financial center. The influx of 91,151 new investors, 85% of whom were foreign, underscores DFM's global appeal. Foreign investors contributed 49% of the total trading value, with net purchases amounting to AED 1.5 billion.
Institutional investors also played a significant role, accounting for 65% of the total trading value. This strong participation from both foreign and institutional investors reiterates DFM's position as a leading financial hub.
Looking ahead, while DFM's performance is impressive, potential investors should consider the market dynamics, including the decline in total trading value. Given the current market conditions and DFM's strategic role in Dubai's financial landscape, a 'hold' position might be prudent for existing investors. New investors should closely monitor market trends and consider entering when conditions are more favorable.
Source
Summary
The Dubai Financial Market (DFM) reported a strong performance in the first nine months of 2024, with a 60% increase in net profit before tax, reaching AED 298.7 million compared to the same period in 2023. The DFM General Index rose by 10.9%, closing at 4,503.48 points, the highest since 2014. Total consolidated revenues increased by 29% to AED 460.3 million, and the number of trades rose by 20% year-on-year to 1.7 million. However, the total trading value decreased by 6% to AED 72.7 billion. The market capitalization of DFM-listed companies reached AED 757 billion. The exchange attracted 91,151 new investors, with 85% being foreign, who contributed 49% to the total trading value. Institutional investors accounted for 65% of the trading value.
