Total revenue decreased 49% to AED 381.8 million during the first nine months of 2015 compared to AED 746.3 million during the corresponding period of 2014. The revenue comprised AED 336.6 million of operating income and AED 45.2 million of investment returns. Company expenses reached AED 136.3 million by the end of September 2015 compared to AED 125.2 million in the same period of 2014. During the third quarter of 2015, revenue reached AED 89.2 million compared to AED 194.2 million in the third quarter of 2014, whilst expenses amounted to AED 43.8 million in the same period compared to AED 40.7 million.
It is noteworthy that the traded value of shares listed on DFM decreased by 58% to AED 132.2 billion during the first nine months of this year compared to AED 315 billion in the same period last year. The daily average of traded value decreased by almost the same percentage to AED 696 million compared to AED 1.67 billion during the same period of 2014. During the third quarter of the year, trading value decreased 63% to 29 billion compared to AED 78 billion in the same period of 2014. Trading commission is the main revenue stream for DFM Company.
The majority of main stock markets globally ended the third quarter of the year down. For instance, the DFM General Index was down 4.8%, compared to 4% for FTSE, 6% for Dow Jones, 10% for the Saudi market, 12% for the Kuwaiti market and 18% for the Egyptian market.
His Excellency Essa Kazim, Chairman of Dubai Financial Market (PJSC) said: “Over the past period of the year, DFM has sustained its endeavor to further develop its infrastructure and investor services regardless of any immediate developments concerning trading activity. In this context, our efforts focused on various areas, as DFM has implemented an enhanced Pre-closing session arrangement as well as a Trading At Last session (TAL) last May. We also launched a comprehensive online gateway (eService) that enables investors to accomplish 15 investor services through mobile applications as well as the website. Additionally, DFM recently launched the new Market Watch webpage, which provides users with a wealth of information about trading activity and they can customize according to their preferences. We have also launched our new smart phone application providing users with instant access to their stock portfolio and various market data. These smart solutions are part of the DFM “Smart Borse” strategy in line with the vision and directions of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai.”
“As for trading activity during the first nine months the year, it has been noticeably affected by some immediate circumstances unrelated to the strong economy of the UAE. These circumstances included the declining oil prices and the concerns about the slowdown in China and its implications for the global economy. In general, the trading value of the regional markets has decreased 28% during the first nine months of this year. Although this trend has affected the revenue and profit of the company, DFM maintained its attractiveness to investors with foreign investors increasing their share in trading activity to 48% compared to 43% during the same period of last year. Foreign investors were net buyers of AED 781 million and the number jumps to AED 1.3 billion when excluding Arabs and GCC nationals. Similarly, institutions were net buyers of AED 1.6 billion of shares, which indicates their confidence in the quality and diversification of investment opportunities available on the market as a direct reflection of the strength and sustainability of the national economy,” H.E. Essa Kazim concluded.