The number of listed firms compliant with Islamic principles of finance fell in the quarter ending June, the Philippine Stock Exchange, Inc. (PSE) said Monday.

In a memorandum posted on its website, the PSE revealed that 45 securities were Shariah-compliant in the second quarter, down from 53 in the first three months of 2019.

The review period ending Sept. 25 saw the removal of nine securities, namely Concrete Aggregates Corp. “A,” Concrete Aggregates Corp. “B,” DMCI Holdings, Inc., iPeople, Inc., Macay Holdings, Inc., Philippine Estates Corp., Pilipinas Shell Petroleum Corp., PXP Energy Corp., and SFA Semicon Philippines Corp.

Meanwhile, United Paragon Mining Corp. made it to the second quarter’s list.

The PSE hired IdealRatings, Inc., a provider of Islamic finance information specializing in screening securities for Shariah compliance, for the period in review.

Being compliant with Shariah principles indicates that firms are not involved in conventional interest-based lending and financial services such as insurance, mortgages and leasing, and other derivatives.

Source Business World