BASF of Germany, the U.K.’s Pearson PLC and PPG Industries Inc. of the U.S. will be added to the Dow Jones Islamic Market World Index, following a regular quarterly review, Dow Jones Indexes announced today.
A total of 130 stocks will be added to the index, while 103 will be deleted, increasing the number of components in the index to 2,618 from 2,591. Following BASF (BAS.XE), Pearson (PSON.LN) and PPG Industries (NYSE: PPG), the largest new components (by free-float market capitalization) in the index are Ingersoll-Rand Co. Ltd. of the U.S. (NYSE: IR) and The Netherlands’ Akzo Nobel N.V. (AKZA.AE).
The free-float market capitalization of the reconstituted Dow Jones Islamic Market World Index increased to US$12.8 trillion from US$12.6 trillion.
The Dow Jones Islamic Market Indexes were introduced in 1999 as the first indexes intended to measure the global universe of investable equities that pass screens for Shari’ah compliance. With more than 100 indexes, the series is the most comprehensive family of Islamic market measures and includes regional, country, and industry indexes, all of which are subsets of the Dow Jones Islamic Market Index.
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. Companies engaged in the following lines of business are excluded from consideration: alcohol, tobacco, pork-related products, financial services, defense/weapons and entertainment.
Also excluded are companies for which the following financial ratios are 33% or more: debt divided by trailing 24-month average market capitalization; cash plus interest-bearing securities divided by trailing 24-month average market capitalization; and accounts receivables divided by trailing 24-month average market capitalization.
There are currently more than 125 licensees with more than US$5 billion in assets benchmarked to the Dow Jones Islamic Market Indexes.
Dow Jones Islamic Market Americas Index
In the Dow Jones Islamic Market Americas Index, the number of components will increase to 808 from 789, with 34 additions and 15 deletions. Following PPG Industries and Ingersoll-Rand in the top five components (by free-float market capitalization) to be added to the index are Dr Pepper Snapple Group Inc. (NYSE: DPS), Pharmasset Inc. (NASDAQ: VRUS), and Cooper Cos. (NYSE: COO).
The total free-float market capitalization of the reconstituted Dow Jones Islamic Market Americas Index increased to US$7.37 trillion from US$7.31 trillion.
Dow Jones Islamic Market Asia/Pacific Index
With 65 additions and 59 deletions, the number of components in the Dow Jones Islamic Market Asia/Pacific Index will increase to 1,261 from 1,255. The top five components (by free-float market capitalization) to be added to the index are: Taiwan’s HIWIN Technologies Corp. (2049.TW), KCC Corp. of South Korea (002380.SE), Australia’s SAI Global Ltd. (SAI.AU), Hyflux Ltd. of Singapore (600.SG) and Ruentex Industries Ltd. from Taiwan (2915.TW).
The total free-float market capitalization of the reconstituted Dow Jones Islamic Market Asia/Pacific Index increased to US$2.45 trillion from US$2.44 trillion.
Dow Jones Islamic Market Europe Index
In the Dow Jones Islamic Market Europe Index, 19 components will be added, while 18 components will be deleted. That increases the number of components in the index to 401 from 400. The top five components (by free-float market capitalization) to be added to the index are BASF, Pearson, Akso Nobel, Koninklijke DSM N.V. of The Netherlands (DSM.AE) and Sweden’s Millicom International Cellular S.A. (MIC-SDB.SK).
The total free-float market capitalization of the reconstituted Dow Jones Islamic Market Europe Index increased to US$2.78 trillion from US$2.68 trillion.
Dow Jones Islamic Market Hong Kong Index
In the Dow Jones Islamic Market Hong Kong Index, with six additions and six deletions, the number of components will remain at 157. The top five components by free-float market capitalization that will be added to the index are China Hongqiao Group Ltd. (1378.HK), China Timber Resources Group Ltd. (0269.HK), Imagi International Holdings Ltd. (0585.HK), IRC Ltd. (1029.HK) and Phoenitron Holdings Ltd. (8066.HK).
The free-float market capitalization of the reconstituted Dow Jones Islamic Market Hong Kong Index increased to US$157.19 billion from US$156.04 billion.
Dow Jones Islamic Market India Index
Seven components will be added to, and 13 components will be deleted from, the Dow Jones Islamic Market India Index, decreasing the number of components to 179 from 185. The top five components (by free-float market capitalization) to be added to the index are Britannia Industries Ltd. (500825.BY), Shree Cement Ltd. (500387.BY), McLeod Russel India Ltd. (532654.BY), Supreme Industries Ltd. (509930.BY) and TTK Prestige Ltd. (517506.BY).
The free-float market capitalization of the reconstituted Dow Jones Islamic Market India Index decreased to US$259.57 billion from US$264.67 billion.
Dow Jones Islamic Market Turkey Index
In the Dow Jones Islamic Market Turkey Index, no components will be added, while one component will be deleted; that decreases the number of components in the index to 35 from 36.
The free-float market capitalization of the reconstituted Dow Jones Islamic Market Turkey Index decreased to US$16.08 billion from US$16.12 billion.
Dow Jones Islamic Market BRIC Equal Weighted Index
Russia’s Yandex N.V. Cl A (YNDX) and 51job Inc. ADS of China (JOBS) will be added to the Dow Jones Islamic Market BRIC (Brazil, Russia, India, offshore China markets) Equal Weighted Index and two components will be deleted. The number of components in the index will remain at 85.
The total free-float market capitalization of the reconstituted Dow Jones Islamic Market BRIC Equal Weighted Index increased to US$661.12 billion from US$658.37 billion.
Dow Jones Islamic Market MENA Index
In the Dow Jones Islamic Market MENA Index, 13 components will be added, while 11 components will be deleted. That increases the number of components in the index to 169 from 167. The top five components (by free-float market capitalization) that will be added to the index are Barwa Real Estate Co. Q.S.C. of Qatar (BRES.DO), Ikarus Petroleum Industries Co. K.S.C.C. of Kuwait (IKARUS.KW), Oula Fuel Marketing Co. K.S.C. of Kuwait (OULAFUEL.KW), KGL Logistics Co. K.S.C.C. of Kuwait (LOGISTICS.KW) and Carthage Cement of Tunisia (CC.TU).
The total free-float market capitalization of the Dow Jones Islamic Market MENA Index increased to US$100.12 billion from US$98.18 billion.
Dow Jones Islamic Market China Offshore Index
51job Inc. will be added to the Dow Jones Islamic Market China Offshore Index and one component will be deleted. The number of components in the index will remain at 24.
The free-float market capitalization of the reconstituted Dow Jones Islamic Market China Offshore Index decreased to US$103.91 billion from US$104.77 billion.
Dow Jones Islamic Market China/Hong Kong Titans 30 Index
China Shenhua Energy Co. Ltd. (1088.HK), GCL-Poly Energy Holdings Ltd. (3800.HK) and Cheung Kong Infrastructure Holdings Ltd. (1038.HK) will be added to the Dow Jones Islamic Market China/Hong Kong Titans 30 Index as a result of the regular annual review.
Foxconn International Holdings Ltd. (2038.HK), China Dongxiang Group Co. Ltd. (3818.HK) and China Shipping Development Co. Ltd. (1138.HK) will be deleted from the Dow Jones Islamic Market China/Hong Kong Titans 30 Index.
The free-float market capitalization of the reconstituted Dow Jones Islamic Market China/Hong Kong Titans 30 Index increased to US$222.63 billion from US$210.07 billion.
The Dow Jones DFM Index, Dow Jones Islamic Market Sustainability Index, Dow Jones Islamic Market Country, Dow Jones Islamic Market Regional, Dow Jones Islamic Market Global and Dow Jones Islamic Market Industry indexes are also part of this regular quarterly review.
The Dow Jones DFM Titans 10 Index is reviewed annually in March. 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, Dow Jones Islamic Market Europe Titans 25, and Dow Jones Islamic Market Malaysia Titans 25 Indexes are reviewed annually in June.
All market capitalization values cited are as of September 6, 2011.
More information on the Dow Jones Islamic Market Indexes is available on www.djindexes.com.
