DFM 2010 profit plunges 77%

Dubai Financial Market reported a 93 per cent drop in fourth-quarter net profit on Monday as trading volumes slumped to a six-year low in 2010.

DFM, the Arab world's only listed bourse, had quarterly profit of Dh5.9 million ($1.61 million), according to Reuters calculations. This compares to a profit of Dh88.6 million in the year-earlier period.

Two analysts polled by Reuters forecast DFM would make a fourth-quarter profit of between Dh3 million and Dh23 million.

DFM posted a full-year profit of Dh78.9 million, according to a statement, down 77 per cent from Dh347 million in 2009.

DFM said 2010 revenues stood at Dh260.5 million, down from Dh502.9 million in 2009.

Revenues have slumped along with bourse turnover, which fell to a six-year low of Dh69.7 billion ($18.98 billion) in 2010, down from Dh173.5 billion in 2009 and less than a quarter of the 2008 total.

"The 60 per cent decline in DFM trading value in 2010 was considerably reflected in our revenues and net profits," Essa Kazim, chief executive of DFM said in a statement.

A lack of buying interest has also weighed on equity valuations, with Dubai's index falling 9.6 percent in 2010 to be the worst performing Gulf Arab benchmark.

DFM shares closed down 3.82 per cent on Monday, while the broader Dubai index fell 2.5 per cent.

DFM's results were released after markets closed.

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