More Shariah listed companies in PSE as of end September
Two companies that have debuted on the Philippine Stock Exchange (PSE) this year joined the latest list of Shariah-compliant securities.
The Villar family’s Golden Haven Memorial Park Inc., which listed in June and cement firm Cemex Philippines Holdings Inc. were among the 56 listed securities that made it to the Shariah list as of the end of September.
There were three more Shariah-compliant securities in the third quarter against the second quarter, said PSE chief operating officer Roel Refran.
“The PSE continues to provide a list of Shariah-compliant securities to cater to the needs of Islamic investors and those who use Shariah as their investment guide. By highlighting listed firms that adhere to the standards of Shariah law, we hope to open investment opportunities in the country to Islamic funds,” Refran said.
The list is based on the screening conducted by IdealRatings which uses the Accounting and Auditing Organization for Islamic Finance Institutions standards for Shariah compliance to screen the PSE-listed firms.
Shariah covers Islamic rules, regulations, teachings and values. To make it to the PSE’s list, a company should be found compliant with the moral code and religious law of Islam.
Prohibited activities under Shariah rules include conventional interest-based lending, financial institutions, insurance, mortgage and lease, derivatives, pork, alcohol, tobacco, arms and weapons, embryonic stem-cell research, hotel, gambling, casinos, music, cinema and adult entertainment.
“Any revenues derived by the company from these prohibited business on an aggregated basis must not exceed five percent of its gross revenues,” the PSE said.
Apart from this, the company’s interestbearing debt should not exceed 30 percent against its 12 month trailing average market capitalization and that the total amount of interest-bearing deposits and investments of the company should not exceed 30 percent against its 12-month trailing average market capitalization.