1. Year by year performance for a period of last 10 years. Performance to be measured in the form of overall index movement. Use graph to demonstrate your finidings
Dubai Financial Market
The model of DFM index defines the free float market capitalization including the different stocks of publicly listed firms. The base value of the DFM index is 1,000 in the last ten years. The index is a useful metric to understanding the financial projection of the financial markets to support the overall growth of the financial markets. The assessment of the DFM will involve the evaluation of ten years trends of the financial markets index in Dubai. The movement along the index trend of the Dubai Financial Market (DFM) will help to assess the performance of the financial markets.
Based on the last ten years trend, it is clear that the DFM has been performing better. However, the DFM suffered a decline in 2014prompting for actions to be taken to revive the financial markets in Dubai. In 2012, DFM reported the highest performance around 3550, which is a good performance. However, starting 2014, the company suffered a decline in the financial market performance. The decline of the DFM performance is mainly associated with the global performance and shocks that are transferred to DFM. DFM is integrated into the global financial markets, and thus, a decline in the global financial performance would lead to an adverse performance of DFM. However, the trend graph shows that the changes of the DFM have not been significant in the last ten years.
Starting from 2007, Dubai Financial market had started recovering from an adverse economic performance. Within the next three to five years, the company was able to achieve its highest performance. It shows that the from 2007, the growth in the infrastructure and integration of Dubai with the global markets profited the Dubai Financial markets accordingly. In the last two years of the index movement, it is clear that the DFM has not been performing well. It is critical for the government to come up wit critical measures to revive the financial markets in the economy (DFM, n.d). For example, the innovation of new financial products and services will be useful in promoting the growth of the DFM. Thus, the long-term success of DFM depends on the ability of the economy to innovate new financial products and implement another potential efforts and initiatives.
However, the technical metrics for DFM shows a strong sell which is critical. The forecasts of DFM are relevant in ensuring that there is a long margin level. The monthly assessment of DFM is critical in development appropriate technical analysis to make a strong sell to promote technical assessment and indicators of the financial markets. For five years, between 2009 and 2014, the DFM was able to perform well due to the good financial environment and global environment.
Based on the DFM trends, the year 2013 saw the DFM perform well. It is clear that DFM was performing better than the other financial markets in the region. However, the occurrence of global financial crisis, the DFM was able to lose momentum in performance in 2015. It is important for DFM to come up with strong financial innovation and supportive regulations which promote growth. In 2013, DFM enjoyed a significant success and breakout in performance (Paltrinieri, 2015). It occurred after there was a significant market selloff. However, the Fed was able to manage the markets through holding off the adverse measures, and DFM was able to benefit well.
Looking back in ten years, there was noted a relatively flat productivity and performance. The global market influences and factors are influencing the DFM. Both housing market and global financial crisis are critical in promoting the expansion of market success (Dimic, Kiviaho, Piljak & Äijö, 2016). However, the crisis of global financial led to an adverse performance in DFM. DFM also relates well to the other emerging markets to promote social instability and productivity in the markets. The correlation of DFM with other emerging markets is usually in realizing the potential gains and future success in the organizations.
DFM.(n.d). Historical Data. DFM.ae. Retrieved from http://www.dfm.ae/market-data/historical-data.
Dimic, N., Kiviaho, J., Piljak, V., & Äijö, J. (2016). Impact of financial market uncertainty and macroeconomic factors on stock–bond correlation in emerging markets. Research in International Business and Finance, 36, 41-51.
Paltrinieri, A. (2015). Stock exchange industry in UAE: An assessment of potential merger between Dubai financial market and Abu Dhabi securities exchange. International Journal of Emerging Markets, 10(3), 362-382.