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


By Mansoor Limba

June 26, 2021

As the country is still battling with the spread of the Covid-19 through its campaign for massive vaccination, the Philippine Stock Exchange (PSE) found 60 securities to be compliant with the principles of Islamic finance as of June 25, 2021, 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 57.

This new list of Shari‘ah-compliant firms issued by the PSE included eight new entities, while five firms had been removed. The eight new entrants are Century Peak Holdings Corporation; Concrete Aggregates Corp A; Concrete Aggregates Corp B; DDMP REIT, Inc.; iPeople, Inc.; Nickel Asia Corporation; The Philodrill Corporation; and PXP Energy Corporation.

Included in the previous quarter’s list, five firms are delisted in this second quarter: Da Vinci Capital Holdings, Inc.; Forum Pacific, Inc.; Kepwealth Property Phils., Inc.; LMG (Chemicals) Corporation; and Philippine Infradev Holdings, 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.


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