Dow Jones Indexes adds Shari'ah-Compliant index to Dow Jones RBP Index Family

Dow Jones Indexes, a leading global index provider, today announced the launch of the Dow Jones Islamic Market RBP U.S. 50 Index, a unique gauge designed to measure the largest 50 U.S. stocks ranked by RBP probabilities supplied by Transparent Value, LLC that have first passed the screens for Shari’ah compliance.

RBP, which stands for Required Business Performance, is calculated by Transparent Value by taking a reverse discounted cash flow approach to determine the future business performance required by a company to support its current stock price. RBP probabilities measure the likelihood that a company can deliver the required business performance identified by applying the methodology over specified time periods.

The Dow Jones Islamic Market RBP U.S. 50 Index is the latest addition to the Dow Jones RBP series of quantitative strategy indexes offered by Dow Jones Indexes and Transparent Value LLC, a New York-based asset management and financial information services company. The Dow Jones RBP Indexes are built upon patent-pending proprietary rules-based analytics supplied by Transparent Value. Continue reading

Indian Muslim traders welcome sharia-compliant share index

Muslim traders in India have welcomed a new share index of companies that comply with Islamic law.The Bombay Stock Exchange launched the index of sharia-compliant firms on Monday, to open stock-trading to more Muslims.The firms have all been screened by TASIS – a Muslim finance company based in Mumbai.

Indian Muslim traders welcome sharia-compliant share index

Indian Muslim traders welcome sharia-compliant share index

TASIS Director Shariq Nisar says the index will give greater investment opportunities to India’s 160 million Muslims. “There’s no option other than the stock market to go to because banking is not permited at the moment,” he said.

“So considering this fincancial inclusion aspect and opportunities for investment, we came up with this index, which we hope can provide a lot of investment options for Muslims, and it will help financial inclusion of the community as well.”

http://australianetworknews.com/stories/201012/3102973.htm?desktop

BSE to launch Shariah-compliant Index to promote fin inclusion

The Bombay Stock Exchange Ltd (BSE) and Taqwaa Advisory and Shariah Investment Solutions (TASIS) will launch the BSE TASIS Shariah 50 index from Monday, December 27. The Index will be the first Shariah Index created in India utilising the strict guidelines and local expertise of a domestic, the India-based Shariah advisory board.

BSE to launch Shariah-compliant Index to promote fin inclusion

BSE to launch Shariah-compliant Index to promote fin inclusion

The BSE TASIS Shariah 50 index consists of the 50 largest and most liquid Shariah compliant stocks within the BSE 500, an exchange release said here.

The creation of the index will help promote financial inclusion of the Muslim population in India and attract investment flows from international funds that must adhere to Shariah norms.

“The introduction of the BSE TASIS SHARIAH 50 Index will give Islamic and other socially-responsible investors another means to access the Indian market and will help attract pools of capital to India from the Gulf, Europe, and Southeast Asia,” BSE MD & CEO, Madhu Kannan said.

This index will create increased awareness on financial investments amongst the masses and help enhance financial inclusion.

The index will also build a base for licensing for the construction of Shariah compliant financial products, including mutual funds, ETFs, and structured products, Kannan said.

http://economictimes.indiatimes.com/markets/stocks/market-news/bse-to-launch-shariah-compliant-index-to-promote-fin-inclusion/articleshow/7157333.cms

http://www.business-standard.com/india/news/bse-to-launch-shariah-index/419522/&com=y&#cs

http://www.indiaeveryday.in/finance/news-bse-to-unveil-shariah-index-counts-on-arab-funds-1025-2114464.htm

http://www.twocircles.net/comment/reply/232568

http://www.tehelka.com/story_main48.asp?filename=Ws241210MARKETSII.asp

http://smartinvestor.in/market/story-54107-storydet-BSE_to_launch_Shariah_index.htm

http://www.telegraphindia.com/1101225/jsp/business/story_13346906.jsp

http://in.news.yahoo.com/bse-launch-shariah-compliant-index-promote-fin-inclusion-20101224-032200-018.html

http://hindu.com/2010/12/25/stories/2010122555341800.htm

Shariah-Compliant Indexes Struggle in November

Dow Jones reported Nov. 24 that several indices tracking Shariah compliant stocks fell in November.
The Dow Jones Islamic Market Titans 100 Index (IMXL) measures 100 leading Shariah-compliant global stocks. The Index fell 0.98% as of Nov. 23, to close at 2119.15. The Islamic Market U.S. Titans 50 Index (DJUS50) also fell, dropping 0.63% to 2145.71 and the Islamic Market Europe Titans 25 Index (DJEU25) fell 3.44% to 2053.13
The Dubai Financial Market struggled in November, as well; the DFM Titans 10 Index posted a month-to-date loss of 6.77%, closing at 2243.47. Indices for Kuwait and Turkey fell also, dropping 2.15% and 4.89%, respectively. While the Islamic market indices suffered, their conventional counterparts posted even larger drops, however. The Kuwait Composite Index fell 1.2% and the Turkey Total Stock Market Index fell 6.4%.
Shariah-Compliant Indexes Struggle in November

Shariah-Compliant Indexes Struggle in November


The Asian and Pacific markets fared slightly better, however, as the Islamic Market Asia/Pacific Titans 25 Index (DJAP25T) increased by 2.49% to 2041.49. The Citigroup Sukuk Index increased as well, gaining 0.44% to close at 126.49.
The Basic Materials, Oil & Gas and Consumer Goods industry indices performed well in November, gaining 1.23%, 1.02% and 0.97%, respectively. Financials, Telecommunications and Health Carewere the three worst performing industries, losing 5.28%, 2.46% and 1.96%, respectively.
Gerard Al-Fil, a financial journalist and analyst for Dow Jones, noted that the Islamic finance industry is “deeply fragmented” and is “split on the principles of whether hedge funds can ever be acceptable.” He pointed to stress from global financial markets as reasons for the drops.
“The emergence of Ireland (and suddenly, Portugal) as the Eurozone’s latest trouble child, reduced U.S. growth prospects announced by the Fed and war drums on the Korean peninsula raised nervousness,” he wrote in a market commentary.
Monem Salam, director of Islamic Investing and portfolio manager at Saturna Capital, noted that indices suffer from inflexibility when trying to comply with Islam.
“Nuances in an Islamic investing index don’t capture” restrictions the way an actively managed fund can, Salam said in a phone interview. For example, he said, an index might exclude all beverage makers in order to avoid alcohol purveyors, while an actively managed fund can look at a company more closely.
http://www.advisorone.com/article/shariah-compliant-indexes-struggle-november

Dow Jones reported Nov. 24 that several indices tracking Shariah-compliant stocks fell in November.
The Dow Jones Islamic Market Titans 100 Index (IMXL) measures 100 leading Shariah-compliant global stocks. The Index fell 0.98% as of Nov. 23, to close at 2119.15. The Islamic Market U.S. Titans 50 Index (DJUS50) also fell, dropping 0.63% to 2145.71 and the Islamic Market Europe Titans 25 Index (DJEU25) fell 3.44% to 2053.13.
The Dubai Financial Market struggled in November, as well; the DFM Titans 10 Index posted a month-to-date loss of 6.77%, closing at 2243.47. Indices for Kuwait and Turkey fell also, dropping 2.15% and 4.89%, respectively. While the Islamic market indices suffered, their conventional counterparts posted even larger drops, however. The Kuwait Composite Index fell 1.2% and the Turkey Total Stock Market Index fell 6.4%.
The Asian and Pacific markets fared slightly better, however, as the Islamic Market Asia/Pacific Titans 25 Index (DJAP25T) increased by 2.49% to 2041.49. The Citigroup Sukuk Index increased as well, gaining 0.44% to close at 126.49.
The Basic Materials, Oil & Gas and Consumer Goods industry indices performed well in November, gaining 1.23%, 1.02% and 0.97%, respectively. Financials, Telecommunications and Health Carewere the three worst performing industries, losing 5.28%, 2.46% and 1.96%, respectively.
Gerard Al-Fil, a financial journalist and analyst for Dow Jones, noted that the Islamic finance industry is “deeply fragmented” and is “split on the principles of whether hedge funds can ever be acceptable.” He pointed to stress from global financial markets as reasons for the drops.
“The emergence of Ireland (and suddenly, Portugal) as the Eurozone’s latest trouble child, reduced U.S. growth prospects announced by the Fed and war drums on the Korean peninsula raised nervousness,” he wrote in a market commentary.
Monem Salam, director of Islamic Investing and portfolio manager at Saturna Capital, noted that indices suffer from inflexibility when trying to comply with Islam.
“Nuances in an Islamic investing index don’t capture” restrictions the way an actively managed fund can, Salam said in a phone interview. For example, he said, an index might exclude all beverage makers in order to avoid alcohol purveyors, while an actively managed fund can look at a company more closely.
http://www.advisorone.com/article/shariah-compliant-indexes-struggle-november