THE Philippine Stock Exchange (PSE) added seven new firms to its list of Shari’ah-compliant securities after screening for the latest period ending Sept. 25, as five issues were bumped off the list.
According to a circular posted on its website, Shari’ah-compliant firms listed at the PSE now total 62, inching up from last quarter’s list of 60 companies.
The PSE included the following firms to the list: Concepcion Industrial Corp., Del Monte Pacific Ltd., Ever-Gotesco Resources and Holdings, Inc., LMG Corp., Monde Nissin Corp., Philippine Infradev Holdings, Inc., and Semirara Mining and Power Corp.
Meanwhile, 2GO Group, Inc., Abra Mining & Industrial Corp., Cyber Bay Corp., Primex Corp., and Pryce Corp. did not make the cut.
The PSE’s quarterly review of firms under its Shari’ah stock market program aims to “open up more investment opportunities for Muslims in the Philippines and worldwide.”
“The exchange engaged the services of IdealRatings, Inc. to screen listed companies in accordance with the standards for Shari’ah compliance as stipulated by the Accounting and Auditing Organization for Islamic Finance Institutions,” the PSE said.
IdealRatings provides services focused on Islamic finance, such as checking securities for their compliance with Shari’ah laws via a business and financial ratios screening.
To be Shari’ah compliant, a listed company must not derive over 5% of its income from businesses in adult entertainment, alcohol, cinema, defense and weapons, financial services, gold and silver hedging, investments with interests, music, pork, and tobacco.
Meanwhile, the financial ratios screening checks if a firm’s cash or interest-bearing deposits or investments and interest-bearing debt both do not exceed 30% of its market capitalization. — Keren Concepcion G. Valmonte
PSE adds seven to list of Shari’ah-compliant firms, five bumped off
Source: Bantay Radio
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