PSE Finds 2 More Shari’ah-compliant Securities in 3rdQ 2021

Philippine Stock Exchange (PSE).

As the country continues to battle with the spread of the Covid-19 through its campaign for massive vaccination, the Philippine Stock Exchange (PSE) found 62 securities to be compliant with the principles of Islamic finance as of September 25, 2021, as indicated in PSE’s website. This number of Shari‘ah-compliant firms shows an increase of two more companies compared to the previous quarter’s list of 60.

This new list of Shari‘ah-compliant firms issued by the PSE included seven new entities, while five firms had been removed. The seven new entrants are Conception Industrial Corporation; Del Monte Pacific Limited; Ever-Gotesco Resources and Holdings, Inc.; LMG Corp; Monde Nissin Corporation; Philippine Infradev Holdings, Inc.; and Semirara Mining and Power Corporation.

Included in the previous quarter’s list, five firms are delisted in this third quarter: 2Go Group, Inc.; Abra Mining & Industrial Corporation; Cyber Bay Corporporation; Primex Corporation; and Pryce Corporation.

As a measure to attract Muslim investors inside and outside the country, the PSE carries out a quarterly evaluation of its listed Shari‘ah-compliant entities in order to ensure compliance with the Accounting and Auditing Organization for Islamic Finance Institutions (AAOIFI).

In order for a company to be listed as a Shari‘ah-compliant entity, it must have less than 5% of its revenues generated from businesses in conventional interest-based lending, financial institutions, pork, alcohol, intoxicants, tobacco, arms and weapons, gambling, casinos, derivatives, adult entertainment, music, and human stem-cell research. In addition, its cash or interest-bearing deposits shall not reach more than 30% of the company’s market capitalization while accounts receivable must be lower than two-thirds of its market capitalization.

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