The Dubai Financial Market (DFM) has reported the successful completion of three major trades involving Al Ansari Financial Services and Ajman Bank, amounting to AED38.6 million ($10.5 million) across 35 million shares.
According to WAM, the first notable transaction consisted of 29.1 million shares of Al Ansari, valued at AED28.5 million, executed at AED0.97 per share in a single trade.
Additionally, the second transaction involved 5.95 million shares of Ajman Bank, valued at AED10.17 million, executed at a price of AED1.71 per share through two separate trades.
These large direct transactions occur outside the regular order book, meaning they do not influence the closing price of the respective shares, nor do they affect the price index or the highest and lowest prices recorded during the trading session or over the past year.
Strong financial results for 2024
In addition, DFM has recently disclosed its consolidated financial results for the first nine months of 2024, revealing a pre-tax net profit of AED298.7 million ($81.32 million). This represents a notable 60 percent increase compared to the same timeframe in 2023. During this period, DFM also witnessed a 29 percent rise in total consolidated revenues, reaching AED460.3 million, up from AED356 million in the previous year. Operating income accounted for AED245.5 million, while investment returns and other income contributed an additional AED214.8 million. Total expenses, excluding tax and provisions, amounted to AED161.6 million, an increase from AED155.5 million during the same period in 2023.
Increase in foreign investor participation
The exchange has seen a remarkable influx of foreign investors, attracting 91,151 new participants in the first nine months of 2024, with 85 percent representing foreign nationals. This highlights DFM’s increasing international appeal. Foreign investors accounted for 49 percent of the total trading value during this period, with net purchases by these investors totaling AED1.5 billion ($408.3 million). The growing involvement of foreign investors, alongside significant engagement from institutional investors, reinforces DFM’s position as a premier financial hub, with institutional investors responsible for 65 percent of the total trading value during this timeframe.
DFM General Index reaches new heights
The DFM General Index (DFMGI) has soared to a 10-year high, outperforming regional markets. The index surged by 10.9 percent, closing at 4,503.48 points during the first nine months of 2024, marking the highest level since 2014. The total number of trades conducted during this period reached 1.7 million, reflecting a 20 percent increase compared to the previous year. However, the total trading value saw a 6 percent decline, settling at AED72.7 billion ($19.79 billion).
As of the end of September 2024, the market capitalization of companies listed on DFM reached AED757 billion ($206.10 billion). The sector composition indicates a diverse market landscape, with the financial sector leading at 42 percent, followed by utilities at 20 percent and real estate at 18 percent. Other sectors, including industrials and communication services, further enhance the market’s diversity, while niches such as consumer staples, consumer discretionary, and materials are also represented. This distribution underscores DFM’s ongoing commitment to diversifying its market offerings and highlights the potential to attract more companies from underrepresented sectors, thereby strengthening Dubai’s status as a leading capital market.
An economic analysis has revealed that the DFM General Index achieved an impressive 10.9 percent increase, the highest in the Gulf Cooperation Council (GCC) region since the beginning of 2024. According to a report released by Kamco Invest, the DFM General Index rose by 4.1 percent in September, marking its fourth consecutive month of growth and the most significant increase among GCC markets for that month, closing at 4,503.48 points.
Notable growth in key indices
This overall growth was broad-based, driven particularly by substantial gains in key indices such as the Financial Index, which rose by 3.6 percent, and the Real Estate Index, which saw a 3.1 percent increase during September 2024. The Communications Services Index experienced an impressive 11.1 percent surge, the largest rise for September, while the Consumer Staples and Utilities indices recorded gains of 5.7 percent and 5.2 percent, respectively.
Additionally, the report noted that the FTSE ADX General Index increased by 1.5 percent in September 2024, bouncing back from a 0.6 percent decline in August and closing the month at 9,425.49 points.
The analysis also highlighted that most GCC equity markets finished September 2024 with positive monthly performances, supported by a rally in global financial markets observed in the latter half of the month.
Furthermore, the MSCI GCC index saw a 0.9 percent increase during this timeframe, reflecting positive momentum across five of the seven exchanges in the region.
For more news on markets, click here.
