Philippine Stock Exchange review finds 62 firms are Shariah-compliant

MANILA: The Philippine Stock Exchange said it classified 62 securities as compliant with Islamic finance principles, as of June 25.

In its quarterly review, the PSE said the compliant stocks include 2GO Group, Inc., D&L Industrues, Inc. and MRC Allied, Inc. The new entrants to the list for this quarter are Concrete Aggregates Corp. (A and B), Golden Bria Holdings, Inc., Ionics, Inc., Nickel Asia Corp., Philippine Estates Corp. and STI Education Systems Holdings, Inc.

Dropped from the list were Araneta Properties, Inc., Cirtek Holdings Philippines, Corp., Golden Haven Park, Inc., Italpinas Development Corp., Keppel Philippines Properties, Inc. and Primex Corp.

The PSE engaged IdealRatings, Inc. to conduct the screening of the listed firms, in accordance with the Accounting and Auditing Organization for Islamic Finance Institutions standards for Shariah compliance.

Islamic finance principles disallow firms from engaging in businesses that involve conventional interest-based lending. The restrictions also cover other financial services like insurance, mortgages and leasing, and derivatives. Other restrictions apply to companies that deal in pork, alcohol, tobacco, arms and weapons, embryonic stem-cell research, hotels, gambling, casinos, music, cinema, and adult entertainment, among others. (Business World).