Securities compliant with Islamic principles of finance dropped to 53 in the second quarter of 2019, according to the Philippine Stock Exchange, Inc. (PSE).
A circular posted on the PSE website Friday showed the removal of five firms considered to be Shariah-compliant, namely Marcventures Holdings Inc., The Philodrill Corp., Primex Corp., United Paragon Mining Corp., and Universal Robina Corp.
Meanwhile, three firms were added to the list: AbaCore Capital Holdings Inc., Philippine Infradev Holdings Inc., and Pryce Corp.
The PSE found 55 firms to be compliant with Islamic finance principles in the first quarter of the year.
Being compliant with Islamic finance principles indicates that companies are not involved in conventional interest-based lending and financial services such as insurance, mortgages and leasing, and other derivatives.
It also bars companies from engaging in businesses involving pork, alcohol, tobacco, arms and weapons, embryonic stem-cell research, hotels, gambling, casinos, music, cinema, and adult entertainment.
IdealRatings Inc., a company that specializes in screening securities for Shariah compliance, was tapped for this quarter’s review. It reviewed the firms using guidelines under the Accounting and Auditing Organization for Islamic Finance Institutions.
Source Business World