Mubasher: MubasherTrade maintained the price target (PT) of DFM Company at AED 1.71, while keeping its “Buy” recommendation.
The Dubai-listed firm posted net earnings of AED 78.5 millionn in Q4-16, 4% higher than MubasherTrade estimates of AED 75.4 million, according to a statement.
Higher revenues is mainly attributed to an increase in trading commission fees, which can be attributed to the increase in DFM trading value.
DFM's trading value is likely to see a rise in the coming period, especially after the company announced plans to introduce covered short-selling on a selected list of eligible securities.
“Covered short-selling involves investors borrowing shares and selling them in the hope of repurchasing them later at a lower price,” the research firm said
The company’s stock rose 2.26% to AED 1.36 in Tuesday’s mid-session.
