Kaedah saringan saham patuh syariah: analisis penyeragaman di Suruhanjaya Sekuriti Malaysia dan institusi-institusi indeks global

• Main Author: Razli, Ramli
• Format: Thesis
• Language: English; English; English
• Published: 2020
• Subjects: HG Finance
• Online Access: https://etd.uum.edu.my/9131/1/s99084_01.pdf; https://etd.uum.edu.my/9131/2/s99084_02.pdf; https://etd.uum.edu.my/9131/3/s99084_references.docx; https://etd.uum.edu.my/9131/

In Malaysia, the Shariah-compliant stock screening method is under the Shariah Advisory Council(SAC) of the Securities Commission Malaysia(SC), while in the global market there are several global index institutions such as the Dow Jones Islamic Indexes (DJII), FTSE Shariah Global Equity Index Series (FTSE) and MSCI Islamic Index Series (MSCI), which have their own Shariah-compliant stock screening method. The discussion of Shariah-compliant securities screening methods is of importance as it has been a key agenda for fund managers in their day-to-day operations to ensure that Shariah-compliant funds can be strategized and invested to maximize profits. This study is to analyze the initiative to standardize the stock screening methods at the Securities Commission of Malaysia and other global index institutions. This inconsistency of Shariah-compliant stocks status among index institutions has led to confusion among the industry players in selecting profitable stocks. It is found that different stock screening methods among index institutions cause the Shariah-compliant status of a stock to be non-uniform in the market. The issue of non-uniformity of Shariah compliance status has long been discussed, but such studies are difficult to find. Therefore, the main objective of the study is to identify proposals on the way to standardize all the screening methods used by the Securities Commission of Malaysia and other global index institutions. This study is a new phenomenon that requires a qualitative methodology since the information on Shariah-compliant stock screening methods need to be excavated from Islamic finance experts as they have access to more detailed facts. A total of nine (9) recognized experts in the field of Shariah-compliant stocks are interviewed as respondents. This study reveals unique findings in which the screening methods used by index institutions are consistent with each other via sectoral screenings, company activities and financial ratios. The study also finds that the purpose of the screening is to achieve different goals and to achieve Shariah compliance in various countries and markets worldwide. The harmonization of Shariah’s opinion by inculcating more agreement in the ijtihad process among Shariah advisers helps to convince industry players to acknowledge the fact that differences in screening methods lead to more benefits than harm. The results of this study are important and have a positive impact on various sectors of the industry in ensuring the continued growth of Islamic finance so that it is not stymied by the issue of non-uniformity of Shariah-compliant stock screening methods.