PSE trying to attract Islamic funds
FIFTY-SIX publicly listed firms were compliant to Islamic laws in the third quarter, with seven companies added to the Philippine Stock Exchange’s (PSE) quarterly list of Shariah compliant stocks while three others were taken out.
In a memorandum posted on the PSE website on Friday, the second quarter’s list counted 53 companies.
The seven companies added to the list were Cemex Holdings Philippines Inc.; Golden Haven Memorial Park Inc.; Italpinas Development Corp.; PXP Energy Corp.; Philippine Realty and Holdings Corp., Primex Corp., and RFM Corp.
A. Soriano Corp., Pepsi-Cola Products Philippines Inc., and Roxas and Company Inc. were taken off the list.
As of end-September, the 56 Shariah compliant firms were: Abra Mining and Industrial Corp.; Acesite (Philippines) Hotel Corp.; Apex Mining Company Inc.; Araneta Properties Inc.; Asian Terminals, Inc.; ATN Holdings Inc. “A”; ATN Holding Inc. “B”; Centro Escolar University; Century Peak Metals Holdings Corp.; Cirtek Holdings Philippines Corp.; Concepcion Industrial Corp.; Crown Asia Chemicals Corp.; D&L Industries Inc.; Da Vinci Capital Holdings Inc.; DMCI Holdings Inc.; Easycall Communications Philippines Inc.; Far Eastern University Inc; Global Ferronickel Holdings Inc.; Golden Haven Memorial Park Inc.; and Holcim Philippines Inc.
The other issues that were retained were Ionics Inc.; iPeople Inc.; IPM Holdings Inc.; IRC Properties Inc.; Island Information & Technology Inc.; Italpinas Development Corp.; Jollibee Foods Corp.; LBC Express Holdings Inc.; Lepanto Consolidated Mining Company “A”; Lepanto Consolidated Mining Company “B”; Liberty Flour Mills Inc.; Liberty Telecoms Holdings Inc.; Mabuhay Vinyl Corp.; MacroAsia Corp.; Manila Electric Company; Marcventures Holdings, Inc.; Nickel Asia Corp.; Oriental Peninsula Resources Group Inc.; and PXP Energy Corp.
Also on the current list were Philippine Realty and Holdings Corp., Primex Corp.; PTFC Redevelopment Corp.; RFM Corp.; SBS Philippines Corp.; Semirara Mining and Power Corp.; Starmalls Inc.; STI Education Systems Holdings Inc.; Swift Foods Inc.; United Paragon Mining Corp.; Universal Robina Corp.; Vitarich Corp.; Vivant Corp.; Wellex Industries Inc.; and Xurpas Inc.
In order to be acceptable to Muslim investors, a company must derive 95 percent of its revenue from businesses that are not prohibited under the Shariah law, the PSE said.
The prohibited businesses include conventional interest-based lending, financial institutions, insurance, mortgage and leasing, derivatives, pork, alcohol, tobacco, arms and weapons, embryonic stem-cell research, hotel, gambling, casinos, music, cinema and adult entertainment.
Aside from prohibited activities, a listed firm’s interest-bearing debt, deposits and investment should not exceed 30 percent against the 12-month trailing average market capitalization. Accounts receivables should not also exceed 67 percent against the 12-month trailing average market capitalization.
The PSE intends to attract some of the $1.3 trillion of global Islamic funds, which includes Shariah compliant equity funds across the globe, to the local market.
The PSE started the quarterly list of Shariah compliant stocks in December 2013.