MANILA, Philippines — The Philippine Stock Exchange said 50 listed companies are Shariah compliant.
The latest count was a result of the screening conducted by IdealRatings Inc. based on the Accounting and Auditing Organization for Islamic Finance Institutions (AAOIFI) standards for Shariah compliance.
Shariah is the moral code and religious law of Islam covering the rules, regulations, teachings, and values that govern the lives of Muslims.
New additions to the list include 2GO Group and Eagle Cement Corp.
To make it to the PSE’s list, a company should be found compliant with the moral code and religious law of Islam.
This means the primary business of Shariah-compliant companies must not involve any of the prohibited activities under Shariah rules.
These activities include 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.
Revenues of the company derived from prohibited business on an aggregated basis must not exceed five percent of its gross revenues, the PSE said.
The company’s interest-bearing debt should not exceed 30 percent against its 12-month trailing average market capitalization and that the total amount of interest-bearing deposits and investments should not exceed 30 percent against its 12-month trailing average market capitalization.
Accounts receivables should also not exceed 67 percent against the 12-month trailing average market capitalization.
The PSE list includes Abra Mining and Industrial, Acesite Philippines Hotel, Agrinurture, Araneta Properties, ATN Holdings, Bogo-Medellin Mining Co., Centro Escolar University, Century Peak Metals Holdings, Chemical Industries of the Philippines, Concepcion Industrial Corp., Crown Asia Chemicals Corp., D&L Industries, Da Vinci Capital Holdings and DMCI Holdings.
Also on the list are Easycall Communications, Far Eastern University, Global Ferronickel Holdings, Golden Haven Memorial Park, Holcim Philippines, Ionics, iPeople, IRC Properties, Island Information & Technology, Jollibee Foods, Keppel Philippines Properties, LBC Express Holdings, Lepanto Consolidated Mining, LIberty Flour Millls, Mabuhay Vinyl and MacroAsia Corp.