PSE Finds 3 More Shari’ah-compliant Securities in 1stQ 2022

Philippine Stock Exchange (PSE) Plaza. (c) Business Mirror

By Mansoor Limba

As the country hopes to bounce back economically through its campaign for massive Covid-19 vaccination, the Philippine Stock Exchange (PSE) found 68 securities to be compliant with the principles of Islamic finance as of March 25, 2022, as indicated in PSE’s website. This number of Shari‘ah-compliant firms shows an increase of three more companies compared to the previous quarter’s list of 65.

This new list of Shari‘ah-compliant firms issued by the PSE included three entities that were not included in the previous quarter’s list, viz., Citicore Energy REIT Corp, Universal Robina Corporation, and Xurpas Inc.

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.

Shari’ah-compliant securities as of March 25, 2022.

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