S&P launches S&P/OIC COMCEC 50 Shariah IndexStandard & Poor’s Indices announced the launch of the S&P COMCEC 50 Shariah Index in partnership with the Organization of Islamic Cooperation (OIC) during the second meeting of the OECD Task Force of MENA Stock Exchanges for Corporate Governance recently held in Istanbul, with the attendance of Fouad Rashid Director of Bahrain Bourse and other stock exchange directors.
S&P stated that the Shariah Index consists of the largest 50 stocks from the eligible universe. Stocks are selected in accordance with Shariah compliance screenings as determined by the S&P Shariah Indices Methodology.
The index measures the performance of the companies whose exchanges are members of the OIC. These are Kuwait, Bahrain, Qatar, Saudi Arabia, United Arab Emirates, Oman, Jordan, Egypt, Lebanon, Malaysia, Morocco Tunisia, Nigeria, Pakistan Turkey Indonesia, Bangladesh, Côte d’Ivoire, and Kazakhstan.
Stocks are selected in accordance to the Shariah Indices Methodology set by S&P. In addition, stocks must have a minimum three-month average daily value traded (ADVT) of US $1 million at each rebalancing reference date. To enhance portfolio diversification, at least one stock but no more than eight, from each country or territory must be included in the Index. The maximum weight of each listed stock in the index is 5%, while the maximum weight of each country in the index is 20% given that the index is reviewed by Standard & Poors on a quarterly to either add or delete stocks from the index.
Fouad Rashid lauded the launch of S&P/OIC COMCEC 50 Shariah Index in partnership with the OIC.
“The index has been designed to shed light on the investment opportunities that the financial markets and exchanges of members in the OIC can provide in a way that will contribute to attracting more investments to those markets. The launch of this index will hopefully meet the ever-increasing interest of investors worldwide for Shariah-compliant companies and instruments,” he said.
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