Malaysia regulator adds to Islamic stocks list

KUALA LUMPUR, Nov 27 - Malaysia's market regulator has increased the number of Islamic stocks listed on its exchange to 855, as the country tries to woo more investors who demand assets that comply with religious law.

The Securities Commission said 87 percent of securities listed on Bursa Malaysia met Islamic law standards, which forbids activities such as interest-based lending, gambling, alcohol and tobacco, which are deemed unethical.

Previously, 85 percent of the securities were sharia-compliant.

The updated list released on Thursday adds 25 securities including auto distributor Tan Chong Motor Holdings Bhd , property developers Equine Capital Bhd and IJM Land Bhd and steel company Perwaja Holdings Bhd .

Warehouse operator Integrated Logistics Bhd and palm oil firm Unico Desa Plantations Bhd have been dropped.

The list is updated twice a year and is available on the Securities Commission's website at www.sc.com.my.

Mostly Muslim Malaysia is pushing the growth of Islamic finance in the hope of becoming a global sharia banking hub. It wants to tap the vast reserves of Middle East petrodollars which want only Islamic investments and hopes sharia banking can be an alternative growth driver for its trade-driven economy.