UK Islamic Stock Screening Rules

Investment Questions and Chats Stocks
#1

Salaam,

I’m attempting to use the Stock Screener within TradingView (free version) to identify a first pass of shariah compliant shares. I’ve tried to use the IFG article (https://www.islamicfinanceguru.com/investment/how-to-screen-for-halal-sharia-compliant-shares/) in order to build up by screener ruleset however am struggling with the second criteria of debt to asset ratio of less than 33%.

To avoid re-inventing the wheel is there a template that has already been created which I could use?

Is this something that would be covered in the Screening for Halal Stocks course? (https://www.islamicfinanceguru.com/courses/halal-stocks-screening/)

Jzk
Razwan

#2

Wasalam

@ibrahimkhan might be able to assist you here

Kind regards

#3

Salaam @ibrahimkhan is this something you could assist with please brother?

#4

Salaam sure happy to help - but that’s the thing you’re struggling with here?

I think you set the debt/total assets ratio at 33% and that’s it no?

#5

Assalamu Alaykum Ibrahim

I have also struggled with this recently- could you please confirm that debt here refers to borrowings only, and does not include other forms of debt such as trade payables? Some existing screening methods (such as MSCI or S&M) state that only interest bearing debt should be included in the calculation, while others (such as Yassar) do not seem to distinguish between interest and non-interest bearing debt.

Barak’Allahu feek
Nawaaz