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Muscat Securities Market reconstitutes Shariah Index

Published: 19/06/2014 04:26:33 PM GMT
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The MSM Shariah Index, which currently includes 30 listed companies, will now have 31 companies that comply with the Accounting and Auditing Or (more)

The MSM Shariah Index, which currently includes 30 listed companies, will now have 31 companies that comply with the Accounting and Auditing Organization for Islamic Financial Institutions ( AAOIFI ) requirements for Islamic investment principles.

The AAOIFI is an Islamic international, autonomous, not-for-profit corporate body that prepares accounting, auditing, governance, ethics and Sharia'a standards for Islamic financial institutions and the industry.

"The MSM would like to announce the new MSM Shariah Index constituents that have passed the AAOIFI rules for compliance with Islamic investment principles. The new sample will be effective from Sunday, June 22," said Jameela Ali al Hamhami, acting director of operations at the MSM, in a circular issued on Tuesday.

Two new listed companies, namely Oman Education and Training Investment Holding and Computer Stationary Industry, have joined the Shariah Index constituents, based on their first quarter financials of 2014.

The MSM excluded Gulf International Chemicals Co from the MSM Shariah Index constituents, as the company failed to maintain its liquidity factor as per the requirements of the Shariah Index.

For the Shariah Index constituent firms, the total sum of liquid assets should not exceed 67 per cent of total assets. In all, 29 companies, whose activities and financial approach meet the requirements of Sharia'a as issued by AAOIFI , maintained their place in the Shariah Index.

The major constituents of the index include Omantel, Nawras, Shell Oman Marketing, Oman Cement, and Raysut Cement.

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