Muscat Securities Market announces new sample of Sharia Index

27/06/2016 06:43 AST

Muscat Securities Market (MSM) has announced its new sample of MSM Sharia Compatible Index for the first quarter of 2015. New sample will be used with effect from Tuesday.

The circular of MSM sample index is compatible with the requirements of Sharia regulations approved by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

The new sample index includes 32 publicly listed company in the MSM whose financial activities were found compatible with the requirements of Sharia regulations. The MSM revises the sample every three months and adds companies that meet the standards and drops others that do not.

The new sample added Oman Textile Holding Company, while respondents saw the exit of Gulf International Chemicals Company because it exceeded the allowable percentage of liquidity ratio of 67 per cent and exit of Oman Oil Marketing Company because of its high interest value from investment that exceeded the allowable percentage of 30 per cent.

The new sample of MSM Sharia Index includes Al Anwar Ceramic Tiles companies, Al Jazeira Service, Al Maha Ceramic, Al Izz Islamic Bank, Bank Nizwa, Computer Stationery Industry, Dhofar Beverage & Food Stuff, Gulf Mushroom products, Gulf Plastic Industries and Majan Glass.

It also includes Muscat Gases, Muscat Thread Mills, National Biscuit Industries, Al Kamil Power, Oman Cables Industry, Oman Chromite, Oman Cement and Oman flour Mills.

The new sample of MSM Sharia Index includes also Oman Refreshment, Oman Telecommunications, Oman Textile Holding, Omani Qatari Telecommunications, Raysut Cement, Salalah mills, Shell Oman marketing, Sweet of Oman, Salalah Port Services, Takaful Oman Insurance and A Saffa Foods.

Observers confirm that Islamic indexes used by the financial markets will help attract a new segment of investors as they resonate with their aspirations. Besides, these investors prefer them because of reliable reference for identifying investments that comply with the requirements and provisions of Islamic law. This, in turn, contributes to the development and growth of the Islamic capital market sector through a wide range of non-traditional investment options.

Times of Oman