KUALA LUMPUR: Yinson Holdings Bhd and Rubberex Corporation (M) Bhd are at risk of dropping out from the Shariah-compliant list for failing to meet the 33 per cent cash and debt ratios threshold, said RHB Investment Bank Bhd.

       In a note today, analyst Alexander Chia said the Shariah rules specify that the debt and cash ratios - intended to measure riba (usury) and riba-based elements within a company’s financial position - must be below 33 per cent of total assets.

       "After screening the financial metrics of the Shariah-compliant stocks under our coverage, we flag two stocks - Yinson and Rubberex - which have failed to meet the financial ratios requirement.

       "Enquiries made with their respective managements do not indicate that there are any significant components of Shariah-compliant cash or debt to mitigate this risk,” he said.

       The research house said the Securities Commission Malaysia is expected to publish a new Shariah-compliant securities list on Nov 26.

       Meanwhile, Chia opined that three stocks could be added to the Shariah list, namely Tan Chong Motor Holdings Bhd (TCM), Tasco Bhd and NTPM Holdings Bhd .

       "TCM and Tasco’s debt ratios have now fallen below the permissible threshold.

       "While NTPM’s nominal debt levels exceed 33 per cent, we understand this includes an Islamic debt component, and stripping this out brings its debt ratio to below 33 per cent of total assets,” he said.

       At 11.40 am, Yinson’s shares rose 27 sen to RM6.02, Rubberex fell 1.5 sen to 56 sen, TCM was flat at RM1.15, Tasco gained two sen to RM1.21 and NTPM inched-up half-a-sen to 50 sen. - Bernama