Fifty-nine Philippine publicly listed companies, including five blue-chip firms under the main-share Philippine Stock Exchange index (PSEi), are deemed Shariah-compliant companies based on a screening process meant to attract Islamic investors.
The five PSEi stocks considered as Shariah-compliant are Consunji-led DMCI Holdings and Semirara Mining and Power Corp., Jollibee Foods Corp., Meralco and Gokongwei-led Universal Robina Corp., based on a memorandum issued by PSE president Ramon Monzon on Friday.
The local bourse teamed up with IdealRatings Inc. to screen listed companies for Shariah compliance in accordance with globally accepted Accounting and Auditing of Islamic Financial Companies (AAOIFI) standards.
Shariah compliance screening excludes companies with businesses in conventional interest-based lending, financial institutions, pork, alcohol, intoxicants, tobacco, arms and weapons, gambling, casinos, derivatives, pornography, music/entertainment and human stem-cell research. It also includes screening the company’s financial ratios of cash and interest bearing investments not exceeding 30 percent, interest bearing debts not exceeding 30 percent and accounts receivables not exceeding 67 percent of market capitalization.
If a company has a subsidiary with lending business, this conventional lending business should not exceed more than 5 percent of total revenues. None of the groups with banking businesses thus made it to the list.
The latest list includes property firms Araneta Properties, Golden Haven Memorial Park, IRC Properties, Philippine Realty and Holdings Corp., Philippine Estates Corp., Primex, PTFC Redevelopment Corp. and Starmalls as well as Acesite (Philippines) Hotel.