The Chittagong Stock Exchange (CSE) has revised its index for the Shariah-compliant securities to offer Muslim investors Halal equities.
Pious Muslims avoid owning companies that are engaged in the business of religiously forbidden products – such as pork, alcohol – or services – such as a nightclub and interest-based banking.
The port-city bourse said in a statement on Wednesday that the bi-annual review would be effective from 4 July.
Based on the index committee's review of the activities and performance of listed companies, 13 scrips have been selected to be included in the list of Shariah-compliant securities.
The newly added companies are ACI Ltd, Associated Oxygen, Bangas, Beacon Pharmaceuticals, Dominage Steel Building Systems, E Generation, Genex Infosys, Golden Harvest Agro Industries, Lub-rref (Bangladesh), Mithun Knitting and Dyeing, Prime Textile Spinning Mills, Samata Leather Complex, and Walton Hi-tech Industries Ltd.
On the other hand, eight have been discarded from the existing list. These are CVO Petrochemical Refinery Ltd, Fu-Wang Ceramic Industry, GQ Ball Pen Industries, H.R. Textile Mills, Intraco Refueling Station, Queen South Textile Mills, Runner Automobiles, and Shepherd Industries.
In the Bangladesh market, in line with the global trend, Shariah-compliant securities are gaining popularity among individuals, Islamic financial institutions, and also Shariah-compliant investment schemes.
High demand for Shariah-compliant scrips is often reflected through the strength in Shariah indices at both local bourses.
However, after the revision, CSE Shariah Index would include 134 companies from 347 listed securities.