KUALA LUMPUR (Aug 15): A total of 833 counters, or 79.4% of the 1,049 counters listed on the securities market, were shariah-compliant as of the end of June this year, according to Bursa Malaysia Bhd (KL:BURSA) chief executive officer Datuk Muhamad Umar Swift.
The market capitalisation of shariah-compliant securities grew by 19.7% year-on-year (y-o-y) to RM1.3 trillion, making up 65.2% of total market value, he said in his welcoming remarks at the Invest Shariah Conference 2024 on Thursday.
The average daily trading value (ADV) of shariah-compliant securities climbed by 50.9% y-o-y to RM2.1 billion, accounting for 65.3% of total ADV, he added.
“We are at a pivotal moment in the world of finance, where the principles of ethical conduct, financial inclusion, and a stakeholder-driven approach are becoming increasingly paramount,” he said.
Muhamad Umar also said the Securities Commission Malaysia’s recent introduction of the Maqasid al-Shariah Guidance for the Islamic Capital Market is a testament to this shift.
Further, the stock exchange regulator has also played its part to advance Malaysia’s shariah-compliant trading and investment landscape with platforms and initiatives such as Bursa Suq Al-Sila’, the Bursa Carbon Exchange, the recent launch of the Pribumi Bursa Malaysia Zakat Index and Bursa Gold Dinar.
“The positive impact of shariah investing is clear. It attracts socially conscious investors, and thereby strengthens the Malaysian economy and Islamic capital market. This is in line with the exchange’s overarching goal of enhancing market vibrancy and liquidity,” Muhamad Umar added.