PSE Keeps 57 Shari’ah-compliant Securities in 1stQ 2021

Photographer: Veejay Villafranca/Bloomberg via Getty Images

By Mansoor Limba

March 26, 2021

After a year of nationwide Covid-19 lockdowns since mid-March last year, the Philippine Stock Exchange (PSE) found 57 securities to be compliant with the principles of Islamic finance as of March 25, 2021, as indicated in PSE’s website. This number of Shari‘ah-compliant firms shows the same number of companies compared to the previous quarter’s list.

This new list of Shari‘ah-compliant firms issued by the PSE included four new entities, while an equal number had been removed. The four new entrants are Converge Information and Communications Technology Solutions, Inc., Global Ferronickel Holdings, Inc., Golden MV Holdings, Inc., and SPC Power Corporation. Removed from the list are Conception Industrial Corporation, Euro-Med Laboratories Phil., Inc., Golden Bria Holdings, Inc., and Xurpas 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.

Shari’ah-compliant Philippine Securities as of March 25, 2021

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