Dow Jones makes changes to Islamic indexes

Sun Microsystems and STMicroelectronics are out. Anglo American and Target Corp are in.

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By  David Ingham Published  June 13, 2004

Dow Jones Indexes has changed the composition of its various Islamic Titans indexes, which provide Islamic investors with a list of companies in which they can put their money. Firms that will be deleted from the Dow Jones Islamic Market Titans 100 and its sub-index, the Dow Jones Islamic Market Asia/Pacific Titans 25, are: Takeda Chemical Industries Ltd. (Japan), Toppan Printing Co. Ltd. (Japan), Eisai Co. Ltd.(Japan), Tokyo Electron Ltd. (Japan). They will be replaced by BHP Billiton Ltd.(Australia), Murata Manufacturing Co. Ltd. (Japan), Secom Co. Ltd. (Japan) and Yamato Transport Co. Ltd.(Japan) in both indexes. Sun Microsystems Inc. will be deleted from the Dow Jones Islamic Market Titans 100 and its sub-index, the Dow Jones Islamic Market U.S. Titans 50. It will be replaced by Target Corp. in both indexes. STMicroelectronics (France) will also be deleted from the Dow Jones Islamic Market Titans 100 and its sub-index, the Dow Jones Islamic Market Europe Titans 25. It will be replaced by Anglo American PLC (UK) in both indexes. The Dow Jones Islamic Market Titans 100 includes the Dow Jones Islamic Market US Titans 50, the Dow Jones Islamic Market Europe Titans 25 and the Dow Jones Islamic Market Asia/Pacific Titans 25. Changes to the indexes are a regular occurrence since a company’s suitability for Islamic investors depends on its areas of activity and its financial ratios, which change regularly. For example, companies dealing in alcohol, tobacco, pork-related products and weapons are excluded. Companies whose total debt is more than 33% of their average annual market cap are also out, as are those whose accounts receivables divided by total assets is 45% or more.

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