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Review finds 59 firms to be Shariah-compliant

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THE Philippine Stock Exchange — PHOTO BY SANTIAGO J. ARNAIZ

THE Philippine Stock Exchange (PSE) found 59 listed firms to be compliant with Islamic finance principles as of Sept. 25.

The quarterly review posted on the PSE website last week showed the addition of Ayala Land, Inc. and Primex Corp. into the list of Shariah-compliant companies.

Meanwhile, a total of seven firms were removed, namely Acesite (Phils.) Hotel Corp., Century Peak Metal Holdings Corp., Nickel Asia Corp., Philab Holdings Corp., Philex Mining Corp., STI Education Systems Holdigns, Inc., and Vitarich Corp.

The previous quarter’s list had 64 Shariah-compliant companies.

Islamic finance principles bar firms from engaging in businesses involved in 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.

The PSE tapped IdealRatings, Inc., a company specializing in screening securities for Shariah compliance, for this period’s review. — Arra B. Francia