Dow Jones Indexes has launched the Dow Jones Islamic Market Malaysia Titans 25 Index, which measures the performance of the top 25 stocks in the Dow Jones Islamic Market Malaysia Index, co
Dow Jones Indexes has launched the Dow Jones Islamic Market Malaysia Titans 25 Index, which measures the performance of the top 25 stocks in the Dow Jones Islamic Market Malaysia Index, comprising Malaysia-domiciled companies that pass rules-based screens for Shari’ah compliance. The index is designed to underlie financial products including exchange-traded funds, structured products and derivatives.
‘Since the late 1990s, Dow Jones Indexes has provided the most sophisticated, consistent and representative index series worldwide to capture the performance of companies that comply with Islamic investment principles,’ says Michael A. Petronella, president of Dow Jones Indexes.
‘The Dow Jones Islamic Market Malaysia Titans 25 Index enables a growing Islamic banking and finance industry to participate in the performance of the top 25 Shari’ah-compliant companies in one of the most rapidly emerging and sought after financial markets in Asia.’
The Malaysia Titans 25 Index is weighted by free float-adjusted market capitalisation and component weights are capped at 20 per cent. As of January 18, the top five components were Sime Darby, IOI Corp., DiGi.com, Kuala Lumpur Kepong and Gamuda.
In a back-test of four years to December 31, 2007, the index gained 176 per cent in US dollar terms. The index is calculated in dollars and in Malaysian ringgit, and is reviewed quarterly in March, June, September and December.
Launched in 1999, the Dow Jones Islamic Market Indexes is the first index family to measure the global universe of investible equities that pass industry and financial ratio screens for Shari’ah compliance.
The index family includes more than 70 regional, country and industry indices derived from the Dow Jones Islamic Market World Index. Other indices in the series are the Dow Jones Islamic Market Sustainability Index, which combines Islamic investing principles with sustainability criteria, and the Dow Jones Citigroup Sukuk Index, the first index to track Islamic bonds.
The Dow Jones Islamic Market Indexes combine Islamic investment principles with Dow Jones Indexes’ rules-based methodology. A six-member supervisory board of Islamic scholars also counsels Dow Jones Indexes on the Shari’ah compliance of eligible stocks for the index series.