The Market Monitor Minding the Nation's Business
Fifty-six companies in the stock exchange are compliant with Islamic banking practice or Shari’ah based on a quarterly screening ending September by the Philippine Stock Exchange (PSE).
PSE engaged the services of IdealRatings Inc., a specialist on Islamic financing, in a project to screen listed companies in accordance with the standards for the Shari’ah law as stipulated by the Accounting and Auditing Organization for Islamic Finance Institutions.
PSE Officer-in-Charge Roel Refran signed PSE Memorandum CN-2016-0069 last Oct 7 that spelled out the guidelines for listed firms to qualify for the program.
The guidelines include the requirements for the nature of the company’s primary business “must not involve any of the prohibited activities as indicated in AAOIFI Shari’ah Standard No. 21— Rules for Dealing of Shares such as conventional interest-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.”
Any revenue derived by the company from these prohibited businesses, on an aggregated basis, must not exceed 5 percent of its gross revenues, the guidelines indicated. The company’s interest-bearing debt should not exceed 30 percent against its 12-month trailing average market capitalization.
The lists of Shari’ah-compliance listed securities are Abra Mining and Industrial Corporation, Acesite (Philippines) Hotel Corporation, Apex Mining Company, Inc., Araneta Properties, Inc., Asian Terminals, Inc., ATN Holdings, Inc. “A”, ATN Holdings, Inc. “B”, Cemex Holdings Philippines, Inc., Centro Escolar University, Century Peak Metals Holdings Corporation, Cirtek Holdings Philippines Corporation, Concepcion Industrial Corporation, Crown Asia Chemicals Corporation, D&L Industries, Inc., Da Vinci Capital Holdings, Inc., Del Monte Pacific Limited, DMCI Holdings, Inc., Easycall Communications Philippines, Inc., Far Eastern University, Inc., Global Ferronickel Holdings, Inc., Golden Haven Memorial Park, Inc., Holcim Philippines, Inc., Ionics, Inc., iPeople, Inc., IPM Holdings, Inc., IRC Properties, Inc., Island Information & Technology, Inc., Italpinas Development Corporation, Jollibee Foods Corporation, LBC Express Holdings, Inc., Lepanto Consolidated Mining Company “A”, Lepanto Consolidated Mining Company “B”, Liberty Flour Mills, Inc., Liberty Telecoms Holdings, Inc., Mabuhay Vinyl Corporation, MacroAsia Corporation, Manila Electric Company, Marcventures Holdings, Inc., Nickel Asia Corporation, Oriental Peninsula Resources Group, Inc., PXP Energy Corporation, Philippine Realty and Holdings Corporation, Primex Corporation, PTFC Redevelopment Corporation, RFM Corporation, SBS Philippines Corporation, Semirara Mining and Power Corporation, Starmalls, Inc., STI Education Systems Holdings, Inc., Swift Foods, Inc., United Paragon Mining Corporation, Universal Robina Corporation, Vitarich Corporation, Vivant Corporation, Wellex Industries, Inc., and Xurpas Inc.
“Newly listed companies will be included at the start of the second quarter following availability of its prospectus or financial statements,” the PSE said. RIZA LOZADA