FTSE SET Index Series is the result of collaboration between the Stock Exchange of Thailand and FTSE Group – one of the leading index expert in the world. This new series of investible and transparent benchmarks is specially designed to measure the performance of Thai capital market and can be used as a basis for attractive index-linked products that appeal to both local and international investors. FTSE SET Index Series comprises indices segmented as below.
 by Market Capitalization
by Shariah Compliance
FTSE SET Shariah Index
The Stock Exchange of Thailand (SET) and FTSE Group have joined with Yasaar Limited, the leading global Shariah consultancy, to create FTSE SET Shariah Index since 23 April 2009.
Using the FTSE SET All-Share Index as the base universe, companies are screened against Shariah principles. The index is created for both domestic and international investors looking to invest according to Islamic principles.
This index can be used for a wide range of Islamic products including funds, ETFs and other index-linked products.
Key summary of FTSE SET Shariah Index (FSTSH)
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Screening Methodology |
Based on the FTSE SET All-Share Index , companies are screened against Shariah principles as follow:
Business Activity Screening
Initially, companies involved in any of the following activities will be filtered out as non Shariah-compliant:
1) Conventional Finance (non-Islamic Banking, Finance and Insurance, etc.)
2) Alcohol
3) Pork related product and non-halal food production, packaging and processing or any other activity related to pork and non-halal food
4) Entertainment (Casinos, Gambling, Cinema, Music, Pornography and Hotels)
5) Tobacco
6) Weapons, arms and defence manufacturing
Financial Ratios Screening
The remaining companies are then further screened on a financial basis. The following financial ratios must be met for companies to be considered Shariah-compliant:
1) Debt is less than 33% of total assets
2) Cash & Interest bearing items are less than 33% of total assets
3) Accounts receivable & cash are less than 50% of total assets
4) Total interest and non compliant activities income should not exceed 5% of total revenue
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Base Date |
29 February 2008 |
Base Value |
1000 with 2 decimal points |
| Frequency of Calculation |
15 seconds |
Index Currency |
Thai Baht |
Index Review Period |
Semi-annually in June and December
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