THE PHILIPPINE Stock Exchange, Inc. (PSE) has included eight new securities that are compliant with Islamic principles of finance based on its latest review.
In a Jan. 8 memorandum released on its website, the PSE announced 57 Shari’ah compliant securities that passed its quarterly screening that ended on Dec. 25 last year.
The additions to the list are ATN Holdings, Inc. “A”; ATN Holdings, Inc. “B”; Berjaya Philippines, Inc.; Eagle Cement Corp.; Euro-Med Laboratories Phil., Inc.; Keppel Philippines Properties, Inc.; Macay Holdings, Inc.; and Philippine Infradev Holdings, Inc.
Meanwhile, companies that were removed from the last quarter’s list were Basic Energy Corp.; Century Peak Holdings Corp.; Global Ferronickel Holdings, Inc.; SPC Power Corp.; and Vulcan Industrial and Mining Corp.
The PSE conducts a review of listed securities every three months. It screens the companies that comply with Islamic standards of finance, which allows Muslim investors to participate in the local bourse.
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 investment do not exceed 30% of their 12-month trailing average market capitalization.
The PSE chose the services of IdealRatings, Inc. for the screening of securities for this period.