MANILA, Philippines - The Philippine Stock Exchange (PSE) has trimmed the number of listed companies considered compliant with the moral code and religious law of Islam.
In its second quarterly update, the PSE said 51 out of the 260 listed companies adhere to the Shariah standard, down from the 61 out of 259 firms in the April list.
The Shariah covers the rules, regulations, teachings and values that govern the lives of Muslims.
The PSE said its updated Guidelines on Screening of Securities for Shariah Compliance further aligns their screening methodology and criteria with Accounting and Auditing of Islamic Financial Companies (AAOIFI) standards.
DoubleDragon Properties Corp., Easycall Communications Philippines Inc., Victorias Milling Co. Inc. and Vitarich Corp. have joined the ranks of Shariah-complaint companies.
Companies retained from the Shariah-complaint list are ATN Holdings, Inc. A and B shares, Abra Mining & Industrial Corp., Bogo-Medellin Milling Company Inc., Concepcion Industrial Corp., Da Vinci Capital Holdings Inc., Far Eastern University Inc., Forum Pacific Inc., Globalport 900 Inc., IRC Properties Inc., Island Information & Technology, Inc., Now Corp., SPC Power Corp., Swift Foods Inc., United Paragon Mining Corp. and Wellex Industries Inc.
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Other companies in the list are Apex Mining Inc., Araneta Properties Inc., Asian Terminals Inc., Calapan Ventures Inc., Centro Escolar University, Chemrez Technologies Inc., Cirtek Holdings Philippines Inc., D&L Industries Inc., DMCI Holdings Inc., EEI Corp., Holcim Philippines Inc., iPeople Inc., Jollibee Foods Corp., Lafarge Republic Inc., Liberty Flour Mills Inc., Mabuhay Vinyl Corp., Manila Bulletin Publishing Corp., Manila Electric Co., Marcventures Holdings Inc., Nickel Asia Corp., Oriental Peninsula Resources Group Inc., Pepsi-Cola Products Philippines Inc., Philex Mining Corp., Philex Petroleum Corp., Philippine Long Distance Telephone Co., Semirara Mining Corp., Starmalls Inc., STI Education Systems Holdings Inc., Universal Robina Corp. and Vulcan Industrial & Mining Corp.
In December, PSE released its initial list of Shariah-compliant companies in line with its goal of attracting a portion of the $1.5-trillion global Islamic funds to the local bourse.
Listed firms involved in ventures like interest-based lending, pork, alcohol, gambling, casinos, pornography, arms and weapons, tobacco, and human stem cell research will be excluded from the Shariah-compliant list. On financial ratios, account receivables should not exceed 67 percent of market capitalization.
PSE hired IdealRatings Inc. to screen the listed companies in accordance with the standards for Shariah compliance as stipulated by the AAOIFI.
Shariah-compliant firms can gain easier access to fresh capital and an ethical investment climate.