PSE Keeps 3 More Shari’ah-compliant Securities in 4thQ 2020

AFP PHOTO/TED ALJIBE

Notwithstanding the nation-wide Covid-19 lockdowns since mid-March this year, the Philippine Stock Exchange (PSE) found 57 securities to be compliant with the principles of Islamic finance as of December 25, 2020, as indicated in PSE’s website. This number of Shari‘ah-compliant firms shows an increase of three more firms compared to the third quarter list last September 25.

This new list of Shari‘ah-compliant firms issued by the PSE included eight new entities, while five had been removed. The eight new entrants are ATN Holdings, Inc. “A,” ATN Holdings, Inc. “B,” Berjaya Philippines, Inc., Eagle Cement Corporation, Euro-Med Laboratories Phil., Inc., Keppel Philippines Properties, Inc., Macay Holdings, Inc., and Philippine Infradev 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.

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