The Philippine Stock Exchange (PSE) on Friday said 61 firms or 20 percent of the 306 listed companies are Shariah-compliant. In the fourth quarter of last year, eight companies were added to the list.
The Philippine Stock Exchange according to president Hans Sicat is listing the Sharia-compliant companies to attract the $1.3 trillion global Islamic funds including Shariah compliant equity funds across the globe.
Sicat added that the list will make it “easier for Muslim Filipinos to invest and participate in the growth of our market.”
The eight companies that entered the list were APC Group Inc., Century Peak Metals Holdings Corp., EEI Corp., Globe Telecom Inc., MacroAsia Corp., NiHAO Mineral Resources International Inc., SSI Group Inc., and Trans-Asia Petroleum Corp.
In order to be recognized as Shariah compliant, the companies’ business operations should not be engaged in “prohibited activities” such as internet-based lending, financial institutions, insurance, mortgage and lease, derivatives, pork, alcohol, tobacco, arms and weapons, embryonic stem-cell research, hotel, gambling, casinos, music, cinema and adult entertainment.
“The total revenues derived by the company from these prohibited businesses must not exceed 5 percent,” the PSE said.
Besides prohibited activities, the listed firms’ interest-bearing debts, deposits and investments 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 has moved the launching of the Shariah index this year, given its failure to launch it in 2014 on extensive study on the mechanics and the criteria for the Shariah index.
As of end-December, the 61 recorded Shariah stocks included: Abra Mining and Industrial Corp., Apex Mining Company Inc., Araneta Properties Inc., Asian Terminals Inc., ATN Holdings Inc. A and B, Bogo-Medellin Milling Company Inc., Centro Escolar University, Chemrez Technologies Inc., Cirtek Holdings Inc., Concepcion Industrial Corp., D&L Industries Inc., Da Vinci Capital Holdings Inc., DMCI Holdings Inc., DoubleDragon Properties Inc., Easycall Communications Philippines Inc., Forum Pacific Inc., Holcim Philippines Inc., iPeople Inc., IRC Properties Inc., Island Information & Technology Inc., and Jollibee Foods Corp.
Other stocks that were retained were: Lafarge Republic Inc., Liberty Flour Mills Inc., Mabuhay Vinyl Corp., Manila Bulletin Publishing Corp., Manila Electric Company, Marcventures Holdings Inc., Minerales Industrias Corp., Nickel Asia Corp., Now Corp., Oriental Peninsula Resources Group Inc., Pepsi-Cola Products Philippines Inc., Philex Mining Corp., Philex Petroleum Corp. and Philippine Long Distance Telephone Company.
To cap off the list, among the Shariah-compliant stocks were Semirara Mining and Power Corp., SPC Power Corp. Starmalls Inc., STI Education Systems Holdings Inc., Swift Foods Inc., United Paragon Mining Corp., Universal Robina Corp., Victorias Milling Company Inc., Vitarich Corp., Vulcan Industrial & Mining Corp. and Wellex Industries Inc.