Muslim and Money

By Mansoor Limba

The Philippine Stock Exchange (PSE) found 40 securities to be consistently compliant with the principles of Islamic finance throughout the four quarters of 2020, as indicated in PSE’s website.

Representing various sectors such as equity, financials, holding firms, industrial, mining and oil, property, services, and small, medium, and emerging (SME) board, these Shari‘ah-compliant firms are the following:

Abra Mining and Industrial Corp.

AgriNurture, Inc.

AllHome Corp.

Asian Terminals, Inc.

Axelum Resources Corp.

AyalaLand Logistics Holdings Corp.

Bogo-Medellin Milling Company, Inc.

Centro Escolar University

Chemical Industries of the Philippines, Inc.

Conception Industrial Corporation

Crown Asia Chemicals Corporation

D&L Industries, Inc.

Da Vinci Capital Holdings, Inc.

Easycall Communications Philippines, Inc.

Far Eastern University, Inc.

Forum Pacific, Inc.

Golden Bria Holdings, Inc.

Greenergy Holdings Incorporated

Holcim Philippines, Inc.

IPM Holdings, Inc.

Island Information & Technology, Inc.

LBC Express Holdings, Inc.

Lepanto Consolidated Mining Company A

Lepanto Consolidated Mining Company B

Liberty Flour Mills, Inc.

MacroAsia Corporation

Manila Electric Corporation

Marcventures Holdings, Inc.

MRC Allied, Inc.

Now Corporation

Pryce Corporation

PTFC Redevelopment Corporation

RFM Corporation

Swift Foods, Inc.

United Paragon Mining Corporation

Vistamalls, Inc.

Wellex Industries, Inc.

Wilcom Depot, Inc.

Xurpas Inc.

Zeus Holdings, Inc.

As a measure to attract Muslim investors inside and outside the country, the PSE carries out 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.