Stock market screening: An analogical study on conventional and shariah-compliant stock markets
enchmarking Shariah-Compliant stocks listed in Bursa Malaysia, this paper examined whether the stocks which are approved by SACSC are also considered as Shariah-Compliant under International Indices. 35 top Shariah-Compliant stocks listed in Bursa Malaysia were examined against four stock screening...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English English |
| Published: |
Canadian Center of Science and Education
2014
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/58526/ http://irep.iium.edu.my/58526/ http://irep.iium.edu.my/58526/ http://irep.iium.edu.my/58526/1/58526_Stock%20Market%20Screening_article.pdf http://irep.iium.edu.my/58526/2/58526_Stock%20Market%20Screening_scopus.pdf |
| Summary: | enchmarking Shariah-Compliant stocks listed in Bursa Malaysia, this paper examined whether the stocks which are approved by SACSC are also considered as Shariah-Compliant under International Indices. 35 top Shariah-Compliant stocks listed in Bursa Malaysia were examined against four stock screening criteria of DJIM, MSCI, FTSE and S&P. Due to the differences in stock screening criteria, the factors evaluated that lead to variances in Shariah-Compliant status for a particular stock. The results from the test indicate that Shariah-Compliant stocks listed in Bursa Malaysia are not necessarily Shariah-Compliant stocks in the four Indices of DJIM, MSCI, FTSE and S&P. The high debt and low market capitalization are the main factors of dropping the Malaysian Shariah-Compliant stocks by the four Indices. The three stages of screening which carry the most Islamic stock screening process include screening on industry, income statement and balance sheet. |
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