S&P launches Sharia index with OIC

S&P Indices has launched a Shariah index, measuring the performance of 50 leading Shariah-compliant companies, in partnership with the Organisation of Islamic Cooperation (OIC).

The S&P/OIC COMCEC 50 Shariah Index comprises the 50 largest stocks from an eligible universe of Sharia-complaint companies from the 19 countries and territories whose exchanges are member states of the OIC. These are: Bahrain, Bangladesh, Côte d’Ivoire, Egypt, Indonesia, Jordan, Kazakhstan, Kuwait, Lebanon, Malaysia, Morocco, Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Tunisia, Turkey and the United Arab Emirates.

At least one stock, and no more than eight, from each country or territory must be included. Stocks must have a minimum three-month average daily value traded (ADVT) of $1 million at each rebalancing reference date. The index is weighted by float-adjusted market capitalisation, with weighting limits to ensure diversification.

Alka Banerjee, vice president, Global Equity and Strategy Indices from S&P Indices said: “We are pleased to partner with the OIC to create this new benchmark for Islamic countries. Demand for Shariah-compliant investing solutions and interest in the equity markets of Islamic countries have increased over the past several years. The S&P/OIC COMCEC 50 Shariah is unique in that it encapsulates in one index the performance of Shariah-compliant stocks from Islamic countries located throughout the world.”

Ibrahim Turhan -OIC Member States’ Stock Exchanges Forum chairman, and chairman & CEO of the İMKB said: “I believe that the S&P/OIC COMCEC 50 Shariah Index will fill a principal gap; since so far, there have been only a few measures to gauge the performance of Shariah-compliant companies. This new index is a product of the collective efforts of our colleagues in the OIC Member States’ Stock Exchanges Forum and S&P Indices, and I would like to express my gratitude to my associates for their valuable contributions. Through the S&P/OIC COMCEC 50 Shariah Index, we hope to contribute to the ever-increasing interest for Shariah-compliant companies while adding to the visibility of the stock exchanges of OIC countries. The Index is also important in the sense that it will offer a benchmark for a variety of financial products such as ETFs and likewise.”

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