PSE Finds 3 More Shari’ah-compliant Securities in 4thQ 2021

Philippine Stock Exchange (PSE).

As the country further intensifies its battle against the spread of the Covid-19 through its campaign for massive vaccination, the Philippine Stock Exchange (PSE) found 65 securities to be compliant with the principles of Islamic finance as of December 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 62.

This new list of Shari‘ah-compliant firms issued by the PSE included nine new entities, while six firms had been removed. The nine new entrants are ACE Enexor, Inc.; Benguet Corporation “A”; Benguet Corporation “B”; MREIT, Inc; NiHAO Mineral Resources International, Inc; Oriental Peninsula Resources Group, Inc; Premiere Horizon Alliance Corporation; Primex Corporation; and RL Commercial REIT, Inc.

Included in the previous quarter’s list, six firms are delisted in this third quarter: Conception Industrial Corporation; Del Monte Pacific Limited; Island Information & Technology, Inc; Marventures Holdings, Inc; PAL Holdings, Inc; and United Paragon Mining 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.

PSE Website.

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