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PSE trims list of Shariah-compliant companies

Posted on July 08, 2014

THE NUMBER of listed firms found compliant with the principles of Islamic law has narrowed following a quarterly review by the Philippine Stock Exchange (PSE).

Fewer listed firms are compliant with the principles of Islamic law, according to the Philippine Stock Exchange. -- AFP
An updated list of Shariah-compliant securities, uploaded on the bourse’s web site on Monday, named 51 out of 296 listed firms, down from the 61 cited in April.

DoubleDragon Properties Corp.; Easycall Communications Philippines, Inc.; Victorias Milling Company, Inc. and Vitarich Corp. were new entrants.

Rounding up the latest list were:

• Abra Mining and Industrial Corp.;

• Apex Mining, Inc.;

• Araneta Properties Inc.;

• Asian Terminals, Inc.;

• ATN Holdings, Inc. “A”;

• ATN Holding, Inc. “B”;

• Bogo-Medellin Milling Company, Inc.;

• Calapan Ventures, Inc.;

• Centro Escolar University;

• Chemrez Technologies, Inc.;

• Cirtek Holdings Philippines, Inc.;

• Concepcion Industrial Corp.;

• D&L Industries, Inc.;

• Da Vinci Capital Holdings, Inc.;

• DMCI Holdings, Inc.;

• EEI Corp.;

• Far Eastern University, Inc.;

• Forum Pacific, Inc.;

• Globalport 900, Inc.;

• Holcim Philippines, Inc.;

• iPeople, Inc.;

• IRC Properties, Inc.;

• Island Information & Technology, Inc.;

• Jollibee Foods Corp.;

• Lafarge Republic, Inc.;

• Liberty Flour Mills, Inc.;

• Mabuhay Vinyl Corp.;

• Manila Bulletin Publishing Corp.;

• Manila Electric Co.;

• Marcventures Holdings, Inc.;

• Minerales Industrias Corp.;

• Nickel Asia Corp.;

• Now Corp.;

• Oriental Peninsula Resources Group, Inc.;

• Pepsi-Cola Products Philippines, Inc.;

• Philex Miing Corp.;

• Philex Petroleum Corp.;

• Philippine Long Distance Telephone Co.;

• Semirara Mining Corp.;

• SPC Power Corp.;

• Starmalls, Inc.;

• STI Education Systems Holdings, Inc.;

• Swift Foods, Inc.;

• United Paragon Mining Corp.;

• Universal Robina Corp.;

• Vulcan Industrial & Mining Corp.; and

• Wellex Industries, Inc.

The 14 who were dropped were: Aboitiz Equity Ventures, Inc.; Aboitiz Power Corp.; Dizon Copper Silver Mines, Inc.; Federal Resources Investment Group, Inc.; Greenergy Holdings, Inc.; Ionics, Inc.; iRipple, Inc.; ISM Communications Corp.; Jolliville Holdings Corp.; Millennium Global Holdings, Inc.; MRC Allied, Inc.; NiHAO Mineral Resources International, Inc.; Pacifica, Inc.; and Vivant Corp.

In April, 25 companies were added and 12 removed from the list.

San Francisco-based Islamic finance specialist IdealRatings, Inc. screened the listed firms using standards set by the Accounting and Auditing Organization for Islamic Financial Institutions.

To be Shariah-compliant, a firm’s primary business should not be involved in conventional interest-based lending, insurance, mortgage and leasing, derivatives, pork, alcohol, tobacco, arms and weapons, embryonic stem cell research, hotels, gambling, casinos, music, cinema and adult entertainment.

It can be involved in these activities but the corresponding revenues should not exceed 5% of the total.

Moreover, interest-bearing debt and interest on deposits/investments should not exceed 30% against the company’s 12-month average market capitalization.

Also, accounts receivables should not exceed 67% against the 12-month average market capitalization. -- Claire-Ann Marie C. Feliciano