Oman’s Muscat Securities Market has re-constituted its Sharia Index by replacing two companies in the basket with new firms.
The companies that are newly included in the index are Oman Flour Mills and Takaful Oman Insurance, while National Biscuit Industries and Oman Refreshment have been removed from the basket of stocks that constitute the index, according to a circular released by the Muscat Securities Market.
Sharia Index has 15 sample companies and the reconstitution was on the basis of traded volumes, liquidity and financial results of the companies. The newly constituted index will be effective from May 1.
Muscat Securities Market’s Sharia-compliant index is made up of companies that are complied with Sharia Law. The sample companies are reviewed by the bourse every three months to add or remove companies according to their compliance with the criteria.
The MSM Sharia Index is made up of companies comply with the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) requirements for Islamic investment principles. The AAOIFI is an Islamic international, autonomous, not-for-profit corporate body that prepares accounting, auditing, governance, ethics and Sharia standards for Islamic financial institutions and the industry. Islamic index will attract new category of investors who prefer to have reliable references that ensure compliance of their investments to the Sharia rules and regulations. This in turn contributes to the development and growth of the Islamic capital market sector as it provides non-traditional investment tools.
The index now include Oman Telecommunications Company, Ooredoo, Bank Nizwa, Al Madina Insurance, Raysut Cement, Al Anwar Ceramic Tiles, Al Izz Islamic Bank, Oman Cables Industry, Oman Cement, Al Jazeira Services, Al Maha Ceramics, Shell Oman Marketing, Oman Flour Mills, Takaful Oman Insurance and A’saffa Foods.