Dubai Financial Market unveils 2006 performance

A total of 16 new companies debuted on DFM raising the number of listed companies to 46, an increase of 53.3% as compared to 2005. These listings served to meet the demands of investors, providing diversified investment options of active and growing companies in the UAE and across the region.

DFM's trading volume during 2006 grew by 55.2% to 39.6 billion shares traded as compared to 25.5 billion shares traded in 2005. Volume of daily traded shares rose to 141.1 million shares during 2006 as compared to 85.4 million shares during 2005, registering a growth of 65.2%. Volume of executed transactions reached 2.4 million transactions in 2006, increasing by 41.1% when compared to 1.7 million transactions in 2005. Value of traded shares has come down from AED 405.2 billion in 2005 to AED348 billion in 2006, a drop of 14.1%.

DFM's market capitalization reached AED319.2 billion by end of 2006, a decline of 24.1% as compared to AED420.5 billion by end of 2005. During 2006, the banking sector's market capitalization contributed 36.7% to DFM's total market capitalization; Real estate and construction sector's market capitalization contributed about 29.7%; Investment and financial services sector about 9.4%; Telecommunication sector about 8.4%; and the remaining percentage was distributed among DFM's other sectors.

DFM's market capitalization was 10% of the total market capitalization of all Arab stock markets by end of 2006. Thus DFM occupied fourth position in terms of market capitalization amongst all the 15 stock markets in the Arab world, according to Arab Monetary Fund's database.

During 2006, DFM's performance was in sync with most of the Arab stock markets. This fact has been reflected by the Arab Monetary Fund Composite Index that measures the performance of all Arab stock markets which recorded a decline of 37% in 2006 as compared to 2005. DFM's General Index was down by 44.4% during 2006 as compared to 2005. DFM's index closed at 4127.33 in 2006 as compared to 7426.37 points in 2005. In comparison with DFM General Index for 2004 and 2006, the index recorded an increase of 64.1%.

Comparative data suggests that the real estate and construction sector contributed the highest in terms of value of traded stocks. During 2006, stocks traded within the real estate and construction sector touched AED179.3 billion, a contribution of 51.5% to DFM's total value of traded stocks. The banking sector stood second with value of traded stocks touching AED94.4 billion, making up 27.1% of the total kitty.

This was followed by the 'Investment and financial services' sector which recorded trading worth AED24.1 billion, a contribution of 6.9%. The insurance sector came in the fourth position with trading worth AED15.5 billion, contributing 4.4%, while the telecommunication sector came in fifth position with trade value at AED14.8billion, contributing 4.3%.

Transportation sector was placed sixth with trading AED12.1 billion and a contribution of 3.5%; Utilities sector seventh with trading AED7.4 billion and a contribution of 2.1%; Materials sector eighth with trading AED22 million; and Consumer staples at number nine with trading worth AED1.5 million. As for value of bond trading on DFM during 2006, it reached AED432 million comprising 0.12% of DFM's overall trading.

During 2006, Emaar Properties led the five most active companies on DFM with trading worth AED167.4 billion, comprising 48.2% of the total value of DFM's trading. Amlak was AED59.5 billion with a contribution of 17.1%; Dubai Investment Company was AED20.2 billion with a contribution of 5.8%; Dubai Islamic Bank was AED20.1 billion with a contribution of 5.7%; and Du at AED14.8 billion contributed 4.3%.

Foreign trading reached 31.4% out of DFM's total value of trading by end of 2006, against 21.9% by end of 2005. Foreign trading included several nationalities but GCC nationals were in pole position as their trading comprised 9.3% out of the total value of trading by end of 2006. Trading executed by other Arab investors grew from 9.8% by end of 2005 to 17.1% by end of 2006, while trading done by other nationalities also increased from 2.7% by end of 2005 to 4.9% by end of 2006.

The gender ratio was interesting to note. DFM's results showed that value of trades conducted by female investors has risen to 7.21% in 2006 out of the total value of trades, against 6.3% in 2005.