KUALA LUMPUR (Nov 5): The stocks of IOI Corporation Bhd, Perdana Petroleum Bhd and SapuraKencara Petroleum Bhd retreated at midday on Wednesday after RHB Research said the three were at risk of being designated as non-compliant when the Securities Commission (SC) publishes its semi-annual review of Shariah-compliant securities at the end of November.
At 12.09pm, IOI Corp shed 0.41% or two sen to RM4.88 with 2.47 million shares done, Perdana Petroleum fell 1.84% or three sen to 1.60 with 424,3003 shares traded while SapuraKencana lost 3.06% or 10 sen with 218,910 shares traded.
In a note Wednesday, the research house said the Syariah Advisory Council (SAC) of the SC stipulates that on top of the business activity benchmarks, cash and debt should each not exceed 33% of total assets.
The research house said it expects IOI Corp, Perdana Petroleum and SapuraKencana to be designated as non-compliant as they have debts that exceed 33% of their respective total assets.
IOI Corp and SapuraKencana are component stocks in the benchmark FBMKLCI.
RHB Research explained that investors in “Syariah-compliant securities” which are subsequently re-classified as “Syariah non-compliant” are required to dispose of the stocks within a month, unless the market price is below investment cost.