Browsing by Topic Islamic capital markets

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Showing results 1 to 10 of 91
  • item.jpg
  • Prof. Datuk Dr. Syed Othman Alhabshi


  • Alhabshi, Syed Othman (1994-02-19)

  • The modern financial system contains at least two types of capital markets - The Stock Exchange and The Commodity Exchange. The Unit Trusts are really an offshoot of the Stock Exchange, in that the stocks are converted into units of investments in various stocks. The value of the units is based on the total value of all the stocks invested. These investment vehicles carry differing degrees of risks, rates of returns. Of course, the economy does have other forms of capital markets, namely the money market which handles inter-bank transactions, the Forex etc., which we are not concerned here. Of late, the capital markets have also been a very important vehicle to raise the necessary amounts of public funds to effect the gigantic privatisation programmes of governments. The stock market is...

  • application_bay_al-innah_bay_al-dayn_malaysian_islam_bonds_islamic_analysis_saiful.pdf.jpg
  • Journal Article


  • Rosly, Saiful Azhar; Sanusi, Mahmood (1999)

  • Financial contracts involving use of bay' al-inah and bay' al-dayn have been extensively used in design of Malaysian Islamic bonds. This paper argues that both these mechanisms have been found unacceptable by the majority of Islamic scholars and proposes the use of financing based on Muqarada and Musharaka principles as genuine alternatives to interest-bearing financial instruments.

  • item.jpg
  • Prof. Datuk Dr. Syed Othman Alhabshi


  • Alhabshi, Syed Othman (2000)

  • The thorny question that is often posed by Muslims who are genuinely and conscientiously attempting to guard their daily economic activities so as to be in tandem with Islamic injunctions is whether they could praticipate in the stock market to earn some Islamically lawful income. The answer is really neither a straight yes nor a simple no. It all depends on whether in the course of the transaction, one violates any of the Islamic principles of business or muamalat or not.

  • item.jpg
  • Prof. Datuk Dr. Syed Othman Alhabshi


  • Alhabshi, Syed Othman (2000)

  • A capital market is typically a place or station where capital is being traded between those having surplus capital and those requiring funds for their investment needs. Mordern capital markets, particularly in a capitalist, monetized economy have, over a century or so, developed into a very efficient system due to the need to facilitate the following demands.

  • item.jpg
  • Prof. Datuk Dr. Syed Othman Alhabshi


  • Alhabshi, Syed Othman (2000)

  • Perkataan saham berasal dari bahasa Arab "al-sahmu" yang pada asasnya merupakan sebahagian daripada ekuiti atau milik seseorang di dalam sesuatu syarikat. Peniaga-peniaga Muslim dari zaman Rasulullah (s.a.w.) lagi telah melibatkan diri dalam perniagaan melalui saham walaupun dalam bentuk yang amat mudah. Saham dibentuk oleh syarikat-syarikat perniagaan untuk menjemput pelaburpelabur menceburkan diri dalam perniagaan dengan melaburkan modal setakat mana ia mampu. Dengan melaburkan modal ke dalam sesuatu syarikat, pelabur tadi dikatakan memiliki syarikat tersebut setakat modal yang dilaburkan. Apa juga keuntungan yang didapati oleh syarikat akan diagihkan kepada semua pemilik syarikat (pemegang saham) mengikut jumlah modal yang telah dilaburkan. Dalam system moden ini, keuntunga...

  • item.jpg
  • Chapter in Book


  • Wilson, Rodney (2009)

  • Islamic capital market products have developed enormously in recent years, with seven major types of sukuk and issuance in four currencies and by ten countries. Much has been achieved since 2000 and many lessons have been learnt. The industry has not suffered the types of setbacks experienced by conventional asset-backed securities, many of which, following the subprime debacle, are now worthless. Yet those involves in sukuk issuance cannot afford to be complacement, as there are many unresolved issues. The aim here is to consider these issues and assess where the industry is going

  • performance_islamic_conventional_exchange_traded_funds_malaysia_adam.pdf.jpg
  • Journal Article


  • Diaw, Abdou; Hassan, Salwana; Ng, Adam Boon Ka (2010)

  • ETFs have attracted many investors as one of the most innovative products of financial engineering. By virtue of the nascent nature of MyETF-DJIM Titan 25 and FBM 30ETF in Malaysia, comparative performance studies are essential during a financial crisis. MyETF is different from FBM 30ETF in terms of investment scope and Shariah governance structure. While MyETF has achieved its objective in tracking its index, FBM 30ETF has failed in this respect. Despite its higher total risk, MyETF performed better than its index. The same applies in the case of FBM 30ETF. Although MyETF has bigger net assets, economies of scale, and better diversification, the performances of the two funds are lacklustre and similar, with FBM 30ETF performing somewhat better. Notwithstanding their success to outperfo...

  • test_arbitrage_pricing_theory_tehran_stock_exchange_shamser.pdf.jpg
  • Journal Article


  • Sabetfar, Pooya; Cheng, Fan Fah; Ramadili Mohd, Shamsher Mohamad; Amin Noordin, Bany Ariffin (2011)

  • This paper provides weak evidence in support for the application of Arbitrage Pricing Theory (APT) on the Iranian stock market in the Sharia is the sacred law of Islam faith.) based close economy. Tests conducted using the principal component analysis and canonical correlation model showed that at least one to three factors that can explain the cross-section of expected returns in this market. Financial and economical sanctions possibly explain the negative stock market returns which reflect the reaction of investors to the announcement of sanctions. Overall, the results suggest that there are four groups of macroeconomic variables in the test period that affect stock returns for the test period, 1991 to 2008, but the significance of these factors is not consistent over time. In general...

  • incentive_compatible_sukuk_musharakah_private_sector_funding_ahcene_obiyathulla.pdf.jpg
  • Journal Article


  • Diaw, Abdou; Bacha, Obiyathulla Ismath; Lahsasna, Ahcene (2011)

  • Despite the huge potential on both the demand and supply sides of the sukuk market, the current sukukstructures fall short of adequately meeting the market’s needs as the Shari'ah compliance of many of them and/or their economic efficiency are questionable. Even though partnership-based sukuk are claimed to reflect the true spirit of Islamic finance, their underuse as a financing instrument is a notable fact. Such a situation, if not addressed, will impede the development of the sukuk market in the future. This paper proposes an innovative sukuk musharakah model for consideration by companies and revenue generating infrastructure projects. The model has an incentive-compatible feature by making the share of the issuing entity in the profit positively related to its performance in ad...

  • item.jpg
  • Chapter in Book


  • Lahsasna, Ahcene; Hassan, M. Kabir (2011)

  • Product innovation and enhancement in business and finance is an important aspect for the development and growth of the Islamic finance industry. However the flexibility provided by Shariah in product development should be understood within the norms of Shariah rules, principles and framework. The following discussion will encompass two major dimensions, namely product development and product approval in Islamic capital market.

Browsing by Topic Islamic capital markets

Showing results 1 to 10 of 91
  • item.jpg
  • Prof. Datuk Dr. Syed Othman Alhabshi


  • Alhabshi, Syed Othman (1994-02-19)

  • The modern financial system contains at least two types of capital markets - The Stock Exchange and The Commodity Exchange. The Unit Trusts are really an offshoot of the Stock Exchange, in that the stocks are converted into units of investments in various stocks. The value of the units is based on the total value of all the stocks invested. These investment vehicles carry differing degrees of risks, rates of returns. Of course, the economy does have other forms of capital markets, namely the money market which handles inter-bank transactions, the Forex etc., which we are not concerned here. Of late, the capital markets have also been a very important vehicle to raise the necessary amounts of public funds to effect the gigantic privatisation programmes of governments. The stock market is...

  • application_bay_al-innah_bay_al-dayn_malaysian_islam_bonds_islamic_analysis_saiful.pdf.jpg
  • Journal Article


  • Rosly, Saiful Azhar; Sanusi, Mahmood (1999)

  • Financial contracts involving use of bay' al-inah and bay' al-dayn have been extensively used in design of Malaysian Islamic bonds. This paper argues that both these mechanisms have been found unacceptable by the majority of Islamic scholars and proposes the use of financing based on Muqarada and Musharaka principles as genuine alternatives to interest-bearing financial instruments.

  • item.jpg
  • Prof. Datuk Dr. Syed Othman Alhabshi


  • Alhabshi, Syed Othman (2000)

  • The thorny question that is often posed by Muslims who are genuinely and conscientiously attempting to guard their daily economic activities so as to be in tandem with Islamic injunctions is whether they could praticipate in the stock market to earn some Islamically lawful income. The answer is really neither a straight yes nor a simple no. It all depends on whether in the course of the transaction, one violates any of the Islamic principles of business or muamalat or not.

  • item.jpg
  • Prof. Datuk Dr. Syed Othman Alhabshi


  • Alhabshi, Syed Othman (2000)

  • A capital market is typically a place or station where capital is being traded between those having surplus capital and those requiring funds for their investment needs. Mordern capital markets, particularly in a capitalist, monetized economy have, over a century or so, developed into a very efficient system due to the need to facilitate the following demands.

  • item.jpg
  • Prof. Datuk Dr. Syed Othman Alhabshi


  • Alhabshi, Syed Othman (2000)

  • Perkataan saham berasal dari bahasa Arab "al-sahmu" yang pada asasnya merupakan sebahagian daripada ekuiti atau milik seseorang di dalam sesuatu syarikat. Peniaga-peniaga Muslim dari zaman Rasulullah (s.a.w.) lagi telah melibatkan diri dalam perniagaan melalui saham walaupun dalam bentuk yang amat mudah. Saham dibentuk oleh syarikat-syarikat perniagaan untuk menjemput pelaburpelabur menceburkan diri dalam perniagaan dengan melaburkan modal setakat mana ia mampu. Dengan melaburkan modal ke dalam sesuatu syarikat, pelabur tadi dikatakan memiliki syarikat tersebut setakat modal yang dilaburkan. Apa juga keuntungan yang didapati oleh syarikat akan diagihkan kepada semua pemilik syarikat (pemegang saham) mengikut jumlah modal yang telah dilaburkan. Dalam system moden ini, keuntunga...

  • item.jpg
  • Chapter in Book


  • Wilson, Rodney (2009)

  • Islamic capital market products have developed enormously in recent years, with seven major types of sukuk and issuance in four currencies and by ten countries. Much has been achieved since 2000 and many lessons have been learnt. The industry has not suffered the types of setbacks experienced by conventional asset-backed securities, many of which, following the subprime debacle, are now worthless. Yet those involves in sukuk issuance cannot afford to be complacement, as there are many unresolved issues. The aim here is to consider these issues and assess where the industry is going

  • performance_islamic_conventional_exchange_traded_funds_malaysia_adam.pdf.jpg
  • Journal Article


  • Diaw, Abdou; Hassan, Salwana; Ng, Adam Boon Ka (2010)

  • ETFs have attracted many investors as one of the most innovative products of financial engineering. By virtue of the nascent nature of MyETF-DJIM Titan 25 and FBM 30ETF in Malaysia, comparative performance studies are essential during a financial crisis. MyETF is different from FBM 30ETF in terms of investment scope and Shariah governance structure. While MyETF has achieved its objective in tracking its index, FBM 30ETF has failed in this respect. Despite its higher total risk, MyETF performed better than its index. The same applies in the case of FBM 30ETF. Although MyETF has bigger net assets, economies of scale, and better diversification, the performances of the two funds are lacklustre and similar, with FBM 30ETF performing somewhat better. Notwithstanding their success to outperfo...

  • test_arbitrage_pricing_theory_tehran_stock_exchange_shamser.pdf.jpg
  • Journal Article


  • Sabetfar, Pooya; Cheng, Fan Fah; Ramadili Mohd, Shamsher Mohamad; Amin Noordin, Bany Ariffin (2011)

  • This paper provides weak evidence in support for the application of Arbitrage Pricing Theory (APT) on the Iranian stock market in the Sharia is the sacred law of Islam faith.) based close economy. Tests conducted using the principal component analysis and canonical correlation model showed that at least one to three factors that can explain the cross-section of expected returns in this market. Financial and economical sanctions possibly explain the negative stock market returns which reflect the reaction of investors to the announcement of sanctions. Overall, the results suggest that there are four groups of macroeconomic variables in the test period that affect stock returns for the test period, 1991 to 2008, but the significance of these factors is not consistent over time. In general...

  • incentive_compatible_sukuk_musharakah_private_sector_funding_ahcene_obiyathulla.pdf.jpg
  • Journal Article


  • Diaw, Abdou; Bacha, Obiyathulla Ismath; Lahsasna, Ahcene (2011)

  • Despite the huge potential on both the demand and supply sides of the sukuk market, the current sukukstructures fall short of adequately meeting the market’s needs as the Shari'ah compliance of many of them and/or their economic efficiency are questionable. Even though partnership-based sukuk are claimed to reflect the true spirit of Islamic finance, their underuse as a financing instrument is a notable fact. Such a situation, if not addressed, will impede the development of the sukuk market in the future. This paper proposes an innovative sukuk musharakah model for consideration by companies and revenue generating infrastructure projects. The model has an incentive-compatible feature by making the share of the issuing entity in the profit positively related to its performance in ad...

  • item.jpg
  • Chapter in Book


  • Lahsasna, Ahcene; Hassan, M. Kabir (2011)

  • Product innovation and enhancement in business and finance is an important aspect for the development and growth of the Islamic finance industry. However the flexibility provided by Shariah in product development should be understood within the norms of Shariah rules, principles and framework. The following discussion will encompass two major dimensions, namely product development and product approval in Islamic capital market.