Manama: The Bahrain Islamic Index, a tool to measure changes in values of Sharia-compliant securities listed on the Bahrain Bourse (BHB), was launched yesterday.
In a statement issued after the launch, BHB chief executive Shaikh Khalifa bin Ebrahim Al Khalifa said the index will be computed from the prices of 17 selected stocks, all of which comply with standards and regulations set by the bourse’s Sharia committee.
“The index will act as a standardised tool, adopted by investors in order to measure the fluctuations of their investment portfolios in the companies computed within the Islamic Index, which will assist them in taking the right decisions regarding these investments at the right time,” he said.
Shaikh Khalifa said the launch of the index was in line with the strategic position of Bahrain as an international Islamic financial hub.
It aimed at guaranteeing the provision of more investment products and instruments to equity issuers and investors of all types, classes and investment goals in the market, he said.
A number of technical and financial standards have been set to determine the inclusion of companies within the index.
A specialised committee will periodically review the companies’ information to take the appropriate decision regarding the inclusion or exclusion of these companies from the index.
The index performance can be tracked on the bourse’s website and in trading bulletins issued by BHB.
A ceremony was held at the BHB premises to mark the launch of the index.
It included BHB chairman Yousuf Abdulla Humood, board members, Central Bank of Bahrain (CBB) executive director of banking supervision Khalid Hamad, top executives of listed companies that comprise the index and officials.
Mr Hamad said the CBB was supportive of this and other such initiatives that would add value to Islamic banking and encourage Islamic banks and various types of companies to tap the capital market, through mutual funds and securities that comply with Sharia.
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