A Comparative Study of Stock Screening Methodologies in Stock Exchanges of Bangladesh and Malaysia and Lessons to Be Learnt

Jalil, M. A. (2020, April-June). A Comparative Study of Stock Screening Methodologies in Stock Exchanges of Bangladesh and Malaysia and Lessons to Be Learnt. Journal of Islamic Banking and Finance, 37(2), 84-97.

14 Pages Posted: 17 Nov 2020

See all articles by Md. Abdul Jalil

Md. Abdul Jalil

University of Dhaka, Faculty of Business Studies, Department of Banking

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Date Written: September 30, 2020

Abstract

The study aims to compare and critically evaluate the stock screening practices between Bangladesh and Malaysia. The study is descriptive in nature. Secondary data is utilized and collected from the books, standards, journal articles and relevant publications. It is found that exchanges of both countries differ in formulating ratios, denominators, numerators and in determining benchmark. A stock can be categorized as Shari’ah compliant in Bursa Malaysia, but may be non-Shari’ah compliant in Dhaka Stock Exchange (DSE), and Chittagong Stock Exchange (CSE). Though, Malaysia observes the same guidelines throughout the country, but this is not the case for Bangladesh. A stock may be considered Shari’ah compliant in DSE but not in CSE and vice versa. After analyzing, it is clear that DSE and CSE may improve their ratios and it is also advisable to use single methodology at least in one jurisdictions to avoid the confusions among masses. The findings of the study will help the authority to look at the deep insight of the issue and update the current criteria.

Keywords: Islamic Stock Indices, Shari’ah Screening, Islamic Capital Market, Ethical Investing, DSE, CSE, Bursa Malaysia

JEL Classification: G11, G15, K22, Z12, O57

Suggested Citation

Jalil, Md. Abdul, A Comparative Study of Stock Screening Methodologies in Stock Exchanges of Bangladesh and Malaysia and Lessons to Be Learnt (September 30, 2020). Jalil, M. A. (2020, April-June). A Comparative Study of Stock Screening Methodologies in Stock Exchanges of Bangladesh and Malaysia and Lessons to Be Learnt. Journal of Islamic Banking and Finance, 37(2), 84-97., Available at SSRN: https://ssrn.com/abstract=3702114

Md. Abdul Jalil (Contact Author)

University of Dhaka, Faculty of Business Studies, Department of Banking ( email )

Dhaka
Bangladesh

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