Yinson and Rubberex at risk of dropping Sharia-compliant list

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KUALA LUMPUR: Yinson Holdings Bhd and Rubberex Corporation (M) Bhd risk removing themselves from the Sharia-compliant list for failing to meet the 33% threshold for liquidity and debt ratios, RHB Investment Bank Bhd said.

In a note released today, analyst Alexander Chia said Sharia rules specify that debt and cash ratios – intended to measure riba (usury) and riba-based items in the situation financial assets of a company – must be less than 33% of total assets.

“After reviewing the financial metrics of the Sharia-compliant stocks under our cover, we report two stocks – Yinson and Rubberex – that did not meet financial ratio requirements.

“Inquiries to their respective directorates do not indicate that there are significant elements of Shariah compliant cash or debt to mitigate this risk,” he said.

The research house said Malaysia’s Securities Commission is expected to release a new list of Sharia-compliant securities on November 26.

Meanwhile, Chia estimated that three stocks could be added to the Sharia list, namely Tan Chong Motor Holdings Bhd (TCM), Tasco Bhd and NTPM Holdings Bhd.

“TCM and Tasco’s debt ratios are now below the authorized threshold.

“Although NTPM’s nominal debt levels exceed 33%, we understand that this includes an Islamic debt component, and removing it reduces its debt ratio to less than 33% of total assets.” , did he declare.

At 11:40 a.m., Yinson’s shares rose 27 sen to RM2 6.0, Rubberex fell 1.5 sen to 56 sen, TCM was stable at RM 1.15, Tasco gained two sen at 1.21 RM and NTPM increased from half a sen to 50 sen. -Bernama


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