Nickel Asia, SSI Group among new Shari’ah-compliant securities

SHARI’AH-COMPLIANT securities increased to 56 from 49 after adding eight and removing one following a quarterly review ending Sept. 25, the Philippine Stock Exchange (PSE) said.

The updated list includes APC Group, Inc., Lodestar Investment Holdings Corp., and Marcventures Holdings, Inc.

Also added were Nickel Asia Corp., SSI Group, Inc., and NexGen Energy Corp.

The updated list also saw the inclusion of Metro Alliance Holdings and Equities Corp. “A” and “B.”

Meanwhile, Easycall Communications Philippines, Inc. was removed.

The PSE issues the updated list of Shari’ah-compliant securities every quarter.

The previous list was released on July 5, covering the period ending June 25, 2024.

Shari’ah is the moral and religious code of Islam that covers rules, regulations, teachings, and values governing the lives of Muslims.

The PSE’s quarterly review is conducted by Islamic finance information provider IdealRatings, Inc., which looks at the companies’ adherence to Shari’ah standards in terms of their business activities and financial ratios.

IdealRatings examines 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.

“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. — Revin Mikhael D. Ochave