NINE new securities have qualified among stocks that are compliant with Islamic principles of finance based on the latest review of the Philippine Stock Exchange, Inc. (PSE).
In an Oct. 7 memorandum posted on its website, the PSE listed 54 Shari’ah compliant securities that account for its quarterly screening that ended on Sept. 25.
The new names that made the list are 2GO Group, Inc.; Altus Property Ventures, Inc.; Basic Energy Corp.; Cyber Bay Corp.; Kepwealth Property Phils., Inc.; LMG Chemicals Corp.; PAL Holdings, Inc.; Primex Corp.; and Vulcan Industrial & Mining Corp.
A total of eight securities were also removed from last quarter’s list. These are Dito CME Holdings Corp.; Eagle Cement Corp.; Oriental Peninsula Resources Group, Inc.; Pacifica Holdings, Inc.; Philippine Infradev Holdings, Inc.; PXP Energy Corp.; Semirara Mining and Power Corp.; and Suntrust Home Developers, Inc.
Every three months, the PSE conducts a review of listed securities to screen which ones follow the Islamic standards of finance. This allows Muslim investors to participate in the local market.
To be compliant, companies must not be involved in, or get more than 5% of its revenues, from adult entertainment, alcohol, cinema, defense and weapons, financial services, gambling, gold and silver hedging, interest-bearing investments, music, pork, and tobacco.
They are also subjected to a financial screening, which requires that their interest-bearing debt and total interest-bearing deposits or investments do not exceed 30% of their 12-month trailing average market capitalization.
The PSE engaged IdealRatings, Inc. for the screening of securities for this period. — Denise A. Valdez
