Gulf Today, Staff Reporter

The Dubai Financial Market (DFM) announced its consolidated financial results for the first quarter of the year ending on March31, 2023 posting a 30% increase in its net profit to Dhs35.6 million, compared to Dhs27.5 million during the corresponding period of 2022.  

DFM’s total consolidated revenue has increased by 13% to Dhs88.9 million in Q1 of 2023, compared to Dhs 78.6 million during Q1 of 2022.  

The revenue comprises Dhs47.4 million of operating income and Dhs 41.5 million of investment returns & other income. Meanwhile, total expenses reached to Dhs 53.3 million compared to Dhs 51.1 million during the same period Q1 of 2022.  

Commenting on the DFM’s strong performance,  Helal Saeed Al Marri, Chairman of DFM, said, “As we announce DFM’s Q1 2023 results, we are proud to say that we have started the year on a strong note. Our unwavering commitment to our investors, stakeholders, and customers has enabled us to navigate through a challenging environment and achieve growth.   

 He added, “DFM’s trading value reached Dhs 19 billion during the first quarter of 2023 compared to Dhs 22.8 billion during the corresponding quarter of 2022.

The DFM General Index advanced 2.1% and the market capitalisation increased 2.4% to Dhs 596 billion from its level at the end of 2022. Foreign investors maintained their strong presence through a market share of 56% of trading value during the first quarter and net purchases of Dhs 636 million, while their ownership reached 19% of the market capitalisation at the end of March 2023.

Additionally, institutional investors’ share of trading value reached 68% with net purchases of Dhs 6.5 million. These results are a testament to the hard work and dedication of our team and the resilience of our business. We remain focused on delivering long-term value to all our stakeholders and look forward to the rest of the year with confidence.”

“During the first quarter of this year, DFM attracted 14,635 new investors, of which 78% were foreign investors, resulting in a total investor base of 1,185,291 representing 215 nationalities. These figures reflect the market participants’ confidence and strong interest in DFM’s profitable trading and IPO opportunities.”  

“DFM’s exceptional performance in Q1 2023 reinforces its position as a leading financial market in the region. The exchange continues to strive for excellence, ensuring that it meets the ever-changing needs of its customers and stakeholders. With the current positive momentum, DFM is well positioned to achieve its strategic objectives and reinforce its role as a global financial hub. We look forward to the future with confidence, and we remain committed to delivering sustainable value to all our stakeholders”, he concluded.   

GCC stock markets saw positive performance mostly as sentiment improved overall. However, concerns could remain regarding global economic conditions and major central banks’ meeting outcomes next week.

This was stated by Farah Mourad Senior Market Analyst of XTB MENA.

“Pressures on oil prices remained with the global economic slowdown staying a primary concern among investors. US GDP figures showed that the US economic growth slowed faster than expected, potentially pulling demand for oil down. European GDP figures were also below expectations while German GDP shrank. At the same time, oil could see some volatility ahead of the Federal Reserve’s interest rate decision.”

“The Dubai stock market recorded strong performances in most sectors as sentiment continues to improve thanks to solid company earnings. The surge in earnings could help the main index extend gains beyond current levels. However, the market could see some concerns next week with traders monitoring important central bank meetings on the global stage.”

The Abu Dhabi stock market continued to strengthen, rebounding from a multi-month low. Improving sentiment and strong local fundamentals could play a big role in maintaining the current trend. Otherwise, the market could remain under pressure if oil prices continue to decline.

Other markets in the region closed the week with mixed performances.

The Qatari stock market closed on a positive note and could see an uptrend for some time after rebounding strongly after its reopening this week. The market has benefited from relatively stable natural gas prices lately but could remain exposed in case of new losses.

The Saudi stock market closed on a small loss after a strong uptrend. The market could see some price corrections in the near term if investors move to secure their gains. However, the main index remains in a position to extend new gains.

The Egyptian stock market remained near this year’s peak and could see some pressures from the challenging global environment as well as potential effects from the geopolitical issues in Sudan. The country has been confronted with strong inflation and has been relying on international financing programs, which could continue pushing international investors to sell.

Dubai Financial Market (DFM) was established as a public institution with its own independent corporate body.