S&P launches Pan Asia Shariah Index

NEW DELHI: Credit rating agency Standard and Poor's has launched an index - S&P Pan Asia Shariah Index, comprising stocks from India and other Asian markets, for Islamic investors.

The index, the latest addition to the S&P Global Shariah Index Series, draws stocks from nine Asian markets including India and will enable Islamic investors to benchmark their investment on a regional basis.

It gives companies an opportunity to develop structured products tailored to the Islamic market.

The other countries eligible for inclusion are China, Hong Kong, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand while Australia, Japan and New Zealand are excluded.

The number of stocks, for Shariah screening purposes, is limited to the top 15 from each country that have a market capitalisation of at least one billion dollars.

The S&P Pan Asia Shariah Index has been launched with 71 companies with an adjusted market capitalisation of 810.83 billion dollars, it said, adding that out of this, IT companies represent approximately 35 per cent.

The S&P Global Shariah Index Series already offers Shariah-compliant versions of Standard and Poor's - the S&P 500, the S&P Europe 350 and the S&P Japan 500 - as well as the S&P GCC Middle East Shariah Index Series and the S&P BRIC Shariah Index.