Islamic Banking

Malaysia to Join Shariah Bonanza

Paul Das, 22 August 2006

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Bursa Malaysia is considering joining the growing trend amongst Asian exchanges by expressing an interest in launching an Islamic Shariah-co...

Bursa Malaysia is considering joining the growing trend amongst Asian exchanges by expressing an interest in launching an Islamic Shariah-compliant index.

Last week Malaysian deputy Finance Minister Awang Adek Hussin revealed that Bursa Malaysia is in discussions with an international index provider to develop and launch indices that would “give investment access and provide a benchmark to international investors".

The Singapore Exchange launched the FTSE SGX Asia Shariah 100 Index last February in partnership with FTSE. This index is made up of 100 Shariah-compliant stocks, from Japan, Singapore, Taiwan, Korea and Hong Kong.

The Stock Exchange of Thailand has also announced its intention to launch a new Islamic index and to work with providers such as Dow Jones, FTSE, Standard & Poor's and MSCI to co-brand the index.

More than 85 per cent of the stocks listed on the Malaysian exchange are Shariah compliant.

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