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SHARIAH INDEX AND SHARIAH EQUITY - Coggle Diagram
SHARIAH INDEX AND SHARIAH EQUITY
SHARIAH INDEX
DEVELOPMENT OF SHARIAH INDEX
DOW-JONES-ISLAMIC MALRKET INDEX
FEB 1999
FINANCIAL TIMES STOCK EXCHANGE (FTSE)
NOV 1999
DOW-JONES-RHB-ISLAMIC MALAYSIA INDEX
JUNE 2005
FTSE BURSA MALAYSIA & EMAS SHARIAH'S INDEX
NOV 2007
FTSE SGX SHARIAH INDEX SERIES
STOCK PERFORMACE OF COMPANIES FOR ASIAN PACIFIC REGION
S & P SHARIAH INDEX
2006
S & P 500 SHARIAH
S & P EUROPE SHARIAH
S & P JAPAN SHARIAH
S & P GCC SHARIAH
S & P PAN ASIA SHARIAH
MEANING AND PROCESS
SHARIAH COMPLIANT / HALAL STOCK
APPROVED BY PROVIDER'S SHARIAH SUPERVISOR BOARD (SSB)
BASED ON STRINGENT SCREENING AND FOLLOWED BY MONITORING THE APPROVED COMPANIES
BY MONITORING THE APPROVED COMPANY, THEY CAN EVALUATE THE COMPANY THAT VIOLATE THE IS;AMIC SCREENING
SHARIAH INDEX PERFORMANCE & GROWTH IN MALAYSIA (BURSA MALAYSIA - i)
SHARIAH EQUITY MARKET
CHARACTERISTIC
TRADED IN CAPITAL MARKET i.e SECURITIES / FINANCIAL ASSETS
THE PRICE IS VERY VOLATILE
INDIVIDU - VERY ATTRACTIVE WITH SURPLUS FUNDS TO BUY AND SELL
HOPING TO GET DIVIDEND IN RETURN / CAPITAL GAIN WITHIN A SHORT TERM
FIRM / GOVERNMENT - TO RAISE THE FUNDS FOR FUTURE EXPANSION OF THEIR BUSINESS
EQUITY FINANCING
EQUITY FINANCING WOULD BE PREFERRED FINANCING / INVESTMENT TECHNIQUE
HAS NO FIXITY OF RETURN
RETURN THAT ARE TIED TO THE EARNING OF THE UNDERLYING BUSINESS
RISK-PROFILE NOT DETACHED FROM THAT OF THE BUSINESS
RELATED VERY MUCH PROFIT AND LOSS SHARING (MUDHARABAH) WITH ALL THE BUSINESS RISKS
NEED TO ENSURE THE EQUITY FINANCING IS IDENTIFIED UNDER SHARIAH COMPLIANCE STOCK
TYPES
STOCK
ISLAMIC ETF (EXCHANGE TRADE FUNDS)
ISLAMIC REITS (REAL ESTATE INVESTMENT TRUSTS)
ISLAMIC MUTUAL FUND
OTHERS i.e ISLAMIC PRIVATE EQUITY FUNDS, ISLAMIC STRUCTURED PRODUCTS
ICM STATISTICS
MALAYSIAN ISLAMIC FINANCE LANDSCAPE
SHARIAH COMPLIAT INSTRUMENT
INVESTMENT IN STOCK
INITIAL PUBLIC ISSUE (IPO)
MUSHARAKAH
DIVIDEND AND CAPITAL GAINS
TRADING
BUY AND SALE
CAPITAL GAINS ONLY
TYPE OF SECURITIES
EQUITY INSTRUMENT
IN TERMS OF CLAIM
RESIDUAL
EQUITY GIVES THE OWNERSHIP TO THE HOLDERS. THE HOLDER OWN THE FIRM LESS THAN THE FIRM'S OBLIGATION
IN TERMS OF TIME
PERPETUAL (NEVER ENDING AND CHANGING)
NOT TERMINAL AND DOES NOT HAVE FIXED MATURITY
COMMON STOCK
AS LONG AS THE SHAREHOLDER HAS THE SHARE HE HAS A RESIDUAL CLAIM ON THE FIRM
OWNERSHIP OF THE COMPANY i.e PLC IS JOINTLY OWNED BY ITS SHAREHOLDERS
THEY HAVE LIMITED LIABILITY CORPORATION - BASED ON THEIR INVESTMENT PORTION
THE SHAREHOLDER IS RESPONSIBLE FOR ANY LOSSES UP TO HIS TOTAL INVESTMENT
UNDERLYING PRINCIPLE
AL-KHARAJ BIL DAMAN
PROFIT WITH RESPONSIBILITY
AL GHORM BIL GHONM
NO REWARD WITHOUT RISK
VOTING SHARE OF ORDINARY SHARE
SHAREHOLDERS HAVE CERTAI RIGHT
RESIDUAL VALUE OF THE FIRM
THE PORTIONS OF DIVIDEND IF ANNOUNCED
VOTE IN THE AGM
SHAREHOLDERS HAVE THE CHANCE FOR CAPITAL GAIN
DISTINTIVE FEATURES
SHARIAH PRINCIPLES
STRUCTURED ACCORDING TO SHARIAH
2, PREFERRED STOCK
A STOCK HAS A PRIORITY IN TERMS OF DIVIDEND AND RIGHTS ON LIQUIDATION OVER COMMON STOCK
ITS TERMS ARE NEGOTIATED BETWEEN INVESTORS AND CORPORATION
FEATURES
RESEMBLES DEBT AND COMMON STOCKS
FIXED RATE RETURN
PRIORITY OVER COMMON STOCK IN PAYMENT OF DIVIDEND UPON LIQUIDATION
CARRIES NO VOTING RIGHT
OPTION OF CONVERTIBILITY TO COMMON STOCK
TYPES
CUMULATIVE PREFERRED
DIVIDEND ARE FIXED AND CUMULATIVE
IF DIVIDENT IS NOT PAID, IT WILL CUMULATIVE FOR THE FUTURE PAYMENT
NON-CUMLATIVE PREFERRED
DIVIDEND IS FIXED BUT NON-CUMLATIVE
RIGHT ISSUES
BONUS SHARES
DEBT INSTRUMENT
IN TERMS OF CLAIM
FIXED
MUST BE PAID IN FULL UPON MATURITY
ONCE MATURES, THE FIRM MUST PAY THE CREDITORS THE PRINCIPLE PLUS INTEREST
IN TERMS OF TIME
FIXED
TERMINAL AND HAS MATURITY
EX. BONDS
IT WOULD PROVIDE HOLDERS A FIXED ANNUAL OR SEMI-ANNUAL INTEREST PAYMENTS (COUPON PAYMENTS) AND FULL REPAYMENT OF PRINCIPAL AT MATURITY
HYBRID
STOCK VALUATION
DEFINITION
ESTIMATE OF THE VALUE OF A SECURITY DONE TO ENSURE A PROBABLE GAIN BEFORE THE SECURITY IS BOUGHT AT MARKET PRICE
PURPOSE
TO DETERMINE THE MEANING OF THE DISCLOSED PROFIT
TO DETERMINE THE TRUE FUTURE VALUE OF THE SECURITY, COMPANY OR ASSET
TARGET / FOCUS OF VALUATION TECHNIQUES
CASH FLOW
ASSET
EARNING
OBJECTIVE OF ANALYSIS
TO DETERMINE THE EARNING AND DIVIDEND PROSPECT
EXPECTATION OF FUTURE INTEREST
THE RISK EXPOSURE OF THE COMPANY
TYPE OF ANALYSIS
FUNDAMENTAL ANALYSIS
TECHNICAL ANALYSIS
