Quarterly review of Dow Jones Islamic Market Indexes

The top five components by free-float market capitalisation that will be added to the index are Teck Resources (Canada, Basic Resources), Sandvik AB (Sweden, Industrial Goods & Services), China Shenhua Energy (China, Basic Resources), Clorox (US, Personal & Household Goods) and Assa Abloy (Sweden, Construction & Materials). The total free-float market capitalisation of the reconstituted Dow Jones Islamic Market World Index increased to $14.31 trillion from $14.11 trillion.

In the Dow Jones Islamic Market Asia/Pacific Index, with 62 additions and 26 deletions, the number of components in the index will increase to 1,199 from 1,163. The top five components by free-float market capitalisation that will be added to the index are China Shenhua Energy, Coal India (India, Basic Resources), S-Oil Corp (South Korea, Oil & Gas), Zhaojin Mining Industry (China, Basic Resources) and Mando Corp. (South Korea, Automobiles & Parts). The total free-float market capitalisation of the reconstituted Dow Jones Islamic Market Asia/Pacific Index increased to $2.66 trillion from $2.60 trillion.

In the Dow Jones Islamic Market Europe Index, 12 components will be added, while five components will be deleted. That increases the number of components in the index to 388 from 381. The top five components by free-float market capitalisation that will be added to the index are Sandvik, Assa Abloy, Pandora A/S (Denmark, Personal & Household Goods), Fiskars Oyj (Finland, Personal & Household Goods) and ASOS PLC (United Kingdom, Retail). The total free-float market capitalisation of the reconstituted Dow Jones Islamic Market Europe Index increased to $3.11 trillion from $3.06 trillion.

In the Dow Jones Islamic Market Americas Index, the number of components will increase to 798 from 776, with 37 additions and 15 deletions. The top five components by free-float market capitalisation that will be added to the index are Teck Resources, Clorox, Motorola Mobility Holdings (US, Technology), MEG Energy Corp. (Canada, Oil & Gas) and New Gold (Canada, Basic Resources). The total free-float market capitalisation of the reconstituted Dow Jones Islamic Market Americas Index increased to $8.33 trillion from $8.24 trillion.

In the Dow Jones Islamic Market MENA Index, no components will be added, while three components will be deleted. That decreases the number of components in the index to 160 from 163. The total free-float market capitalisation of the Dow Jones Islamic Market MENA Index decreased to $103.05 billion from $106.94 billion.

In the Dow Jones Islamic Market BRIC Equal Weighted Index, four components will be added, while five components will be deleted. That decreases the number of components in the index to 84 from 85. The total free-float market capitalisation of the reconstituted Dow Jones Islamic Market BRIC Equal Weighted Index increased to $795.40 billion from $767.98 billion.

In the Dow Jones Islamic Market China Offshore Index, two components will be added and two components will be deleted. The number of components in the index will remain at 23. The free-float market capitalisation of the reconstituted Dow Jones Islamic Market China Offshore Index increased to $110.60 billion from $95.01 billion.

In the Dow Jones Islamic Market Hong Kong Index, with 11 additions and one deletion, the number of components will increase to 144 from 134. The free-float market capitalisation of the reconstituted Dow Jones Islamic Market Hong Kong Index increased to $176.92 billion from $164.86 billion.

In the Dow Jones Islamic Market India Index, seven components will be added and nine components will be deleted. That decreases the number of components in the index to 175 from 177. The top five components by free-float market capitalisation that will be added to the index are Coal India, Prraneta Industries (India, Industrial Goods & Services), Orissa Minerals Development (India, Basic Resources), MOIL (India, Basic Resources) and Persistent Systems (India, Technology). The free-float market capitalisation of the reconstituted Dow Jones Islamic Market India Index decreased to $274.03 billion from $286.91 billion.

In the Dow Jones Islamic Market Turkey Index, one component will be added and no components will be deleted. The number of components in the index increases to 33 from 32. The free-float market capitalisation of the reconstituted Dow Jones Islamic Market Turkey Index decreased to $16.16 billion from $16.19 billion.

In the Dow Jones Islamic Market Titans 100 Index and sub-index, Dow Jones Islamic Market US Titans 50 Index, UnitedHealth Group Inc. (US, Health Care) will be replaced by Halliburton (US, Oil & Gas). The change is a result of the regular quarterly review of the Dow Jones Islamic Market World Index. The Dow Jones Islamic Market Titans 100 and its three sub-indexes, Dow Jones Islamic Market U.S. Titans 50, Dow Jones Islamic Market Asia/Pacific Titans 25 and Dow Jones Islamic Market Europe Titans 25 are reviewed annually in June. The free-float market capitalisation of the reconstituted Dow Jones Islamic Market Titans 100 Index increased to $6.763 trillion from $6.762 trillion.

An independent Shari’ah Supervisory Board counsels Dow Jones Indexes on matters related to the compliance of index-eligible companies. To determine their eligibility for the Dow Jones Islamic Market Indexes, stocks are screened based on their industry type and their financial ratios. Excluded are companies engaged in the following lines of business: alcohol, tobacco, pork-related products, financial services, defence/weapons and entertainment. Also excluded are companies for which the following financial ratios are 33 per cent or more: debt divided by trailing 24-month average market capitalisation; cash plus interest-bearing securities divided by trailing 24-month average market capitalisation; and accounts receivables divided by trailing 24-month average market capitalisation.

There are currently more than 125 licensees with more than US$5 billion in assets benchmarked to the Dow Jones Islamic Market Indexes.

source : CPI financial

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s