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The Markets May 23, 2007
S&P Expands Shariah-Compliant Indexes
Standard&Poor's has launched indexes that include the most liquid stocks in Brazil, Russia, India, and China that comply with Shariah law.
Reported by Adrien Martin
According to a company press release, the stocks included in the S&P BRIC Shariah Index currently trade on the Hong Kong Stock Exchange, London Stock Exchange, NASDAQ and the New York Stock Exchange.
S&P began offering Shariah-compliant indexes in April (See S&P Unveils Shariah-Compliant Indexes). To be eligible for inclusion in the S&P BRIC Shariah Index, companies must first be constituents of the S&P/IFCI Index for Brazil, Russia, India and China. According to the news release, constituents are then screened for Shariah compliance based upon proprietary sectoral and financial ratios.
All S&P Shariah indexes are screened by Ratings Intelligence Partners, a Kuwait-based consulting company specializing in the Islamic investment market. The indexes exclude businesses that offer products and services which are considered unacceptable or non-compliant according to Shariah-law, such as advertising and media (newspapers are allowed, sub-industries are analyzed individually), alcohol, financials, gambling, pork, pornography, tobacco, and the trading of gold and silver as cash on a deferred basis.
For more information on the S&P Shariah Indices visit www.globalindices.standardandpoors.com.