ASEAN KEY DESTINATIONS
Philippine bourse mulls Islamic stock index
The Philippines Stock Exchange (PSE) said on Tuesday it is considering setting up an index of sharia compliant stocks to compete with the likes of Malaysia in capturing a slice of the Islamic investment market.
"We plan to look into it ... to see whether there is potential. Other exchanges in the Asian region are doing it so we might be left behind. We have to study it carefully," PSE President Francisco Lim told Reuters.
The stock exchanges of Malaysia, Indonesia and Singapore have established Islamic equity indexes while Thailand expects to launch its first such index next month.
However, plans to set up electronic links and create an Asean (Association of Southeast Asian Nations) trading board had progressed to the signing of memorandum of agreements last week between the bourses of the Philippines, Singapore, Malaysia, Indonesia and Thailand.
They are currently working on cost assessments for the infrastructure that will see the five exchanges each nominate 30 companies to be traded on a single linkage, Lim said. "I think cost is a big issue," he said, adding that there was no target date to launch the mechanism.
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