THE Philippine Stock Exchange, Inc. (PSE) has included Centro Escolar University (CEU), an educational institution, and PTFC Redevelopment Corp., a warehouse leasing company, in its list of Shari’ah-compliant securities.
The updated list, issued on April 4, also saw the removal of Figaro Coffee Group, Inc., a food and beverage company, and Nickel Asia Corp., a mining firm.
The revisions were made following the quarterly screening for the period ending March 25, 2025.
The number of compliant companies remained at 53.
The PSE issued the prior list of Shari’ah-compliant securities on January 8, which covered the review period ending December 25, 2024.
Shari’ah is the moral and religious code of Islam that includes rules, regulations, teachings, and values governing the lives of Muslims.
“Shari’ah-compliant investment instruments create a mechanism for listed companies to gain access to potential funding from Islamic investors, including those in countries in the Middle East and other countries with high Muslim populations such as Malaysia and Indonesia,” the PSE said.
Done by Islamic finance information provider IdealRatings, Inc., the quarterly review looks at the compliance of the companies’ business activities and financial ratios to Shari’ah standards.
IdealRatings inspects listed companies in accordance with Shari’ah standards under the Accounting and Auditing Organization for Islamic Financial Institutions.
Under the business screening, the income of companies derived from activities such as adult entertainment, alcohol, cinema, defense & weapons, financial services, gambling, gold and silver hedging, interest-bearing investments, music, pork, and tobacco must be less than 5%.
In terms of financial ratio screening, a company’s cash or interest-bearing deposits or investments should not exceed 30% of its market capitalization, while its interest-bearing debt should not go beyond 30% of its market capitalization. — Revin Mikhael D. Ochave
