Islamabad Stock Exchange Limited and Al Meezan Investment Management agree to launch ISE Meezan Index 25

Islamabad, October 10, 2013 (PPI-OT): In order to facilitate investment and trading in Shariah Compliant companies/securities, the Islamabad Stock Exchange Limited (ISE) and Al Meezan Investment Management Limited have agreed to launch “ISE Meezan Index 25” at ISE. For the purpose, an event was organized here at ISE to formally sign a Memorandum of Understanding (MOU) for the development of the said index. The MOU was signed by Mian Ayyaz Afzal, MD/CEO, ISE and Mr. Mohammad Shoaib, Chief Executive, Al Meezan Investment Management Limited.

In his inaugural address, Mian Ayyaz Afzal, Managing Director ISE said that the ISE provides a platform to the investors for investing in securities of listed companies. ISE has an edge that it has comparatively a large retail-investors base. ISE has been making efforts to offer a variety of products to the investing public.

The introduction of Islamic Index is an effort to provide investment opportunity to specific segment of the stock investors who are more interested to invest in Shariah Compliant companies and securities. MD, ISE appreciated the cooperation of AL-Meezan Investment and expected that both the entities with their lasting efforts shall succeed in achieving the objectives.

Mr. Shoaib Chief Executive of Al-Meezan said that their company has been on forefront in providing Islamic products to the investors in financial industry. He said that earlier KSE Meezan Index had been very successful for Shariah compliant investment. He expected that ISE and Al-meezan shall go a long way towards introducing various Islamic products in the market.

Mr. Ali H. Khan, AVP- Product Development, Al Meezan Investment Management Limited gave a detailed presentation on the composition of the Index and the procedures involved in it. He said that 25 companies will be included in the index upon technical screening and other requirements of the criteria for being shariah compliant including Tradability of the company, CDC eligibility, formal listing history, operational track record and minimum free float. He said that after the launch of the Index, the investors at ISE could invest in 25 Shariah compliant companies and securities.

Speaking on the occasion, Mr. Muhammad Rashid Zahir, Chairman, ISE said that the event is relevant to this present condition of the economy and the securities market of the country as both are showing signs of upturn and waiting for right triggers.

Under the circumstances, there is a need for taking sound initiatives by the institutions in the financial industry to play a positive role in strengthening the momentum of the economic growth.

He said that Shariah compliant financial industry has grown rapidly world-wise in the last few decades. Shariah compliant assets are currently 1.5 percent of global and are estimated to have far exceeded one trillion US dollars.

In Pakistan Shariah compliant banking has flourished since the establishment of Islamic banks and Shariah compliant windows of conventional banks and presently Shariah compliant deposits amount to Rs.771 billion and constitute 9.9 percent of the total bank deposits.

The pace of growth in Shariah compliant deposits on year to year basis has been very encouraging. Chairman ISE further added that the same phenomenon of growth is going to unfold in the capital market and we should have to make serious efforts to address the market needs by bringing up more Shariah compliant financial products in the market.

“I sincerely hope that the cooperation between ISE and Al-Meezan Investment will grow in the future. ISE will depend on the expertise of Al-Meezan and they will trust ISE for its operational strength” Chairman ISE further added.

For more information, contact:
Usman Rashid
Incharge – Investor Relations
Islamabad Stock Exchange Limited
ISE Towers, 55-B, Jinnah Avenue,
Islamabad-44000, Pakistan.
Cell: +92-0321-5889131
Phone: +92-51-111-473-473
Fax: +92-51-111-473-329