Twitter stock found to be Sharia-compliant
Islamic funds free to invest in micro-blogging business as stock passes review
Twitter Inc stock has been certified as suitable for investment by Islamic funds, according to California-based IdealRatings, which screens businesses to determine their level of compliance with Muslim values.
According to a report from Reuters, IdealRatings responded to requests from a number of fund managers and individual investors in a number of countries. Sharia's views on alcohol, gambling and monetary speculation (including interest payments) means Islamic funds must avoid investment in companies with connections to certain products and practices.
IdealRatings has rated around 15,000 securities as Sharia-compliant of the 42,000 it has assessed. Compliant companies include Google Inc and Microsoft Corp. Companies found to be non-compliant include Citigroup, because of its use of interest, and luxury goods group LVMH, because it produces alcohol.
Twitter's $1.82bn IPO, which issued 70m shares, saw a first-day trading volume that pushed the value of the stock up by nearly 73%, although price levels have now begun to normalise.