By Mukhriz Mangsor, ACSI, CFTe, MSTA
SINGAPORE (Wednesday, 1 March 2023) – The higher highs recorded on its technical charts since September 2022 are suggesting that the Dow Jones Islamic Market US Index is poised for a recovery from the declines of last year.
A trendline drawn from year 2020 to-date also suggests the index may continue its upward trajectory, potentially breaking the next resistance at the 8170 area. If the trend persists, the price may push higher and even approach the 10,000 mark.
The Index’s steady upward trend since 2010 remains intact despite some corrective price action throughout of 2022. (See Chart)
Leading the pack are Meta Platforms, Apple and Amazon, which have all shown double-digit growth, highlighting their strong performance in the market. However, two stocks – Procter & Gamble and Johnson & Johnson – have shown negative performance YTD, which has slightly dampened the overall performance of the index.
This trend is a testament of the growing interest in socially responsible investing, as investors increasingly seek out companies that align with their values.
The positive gains in the index also demonstrate that companies that adhere to Islamic principles can perform well in the market, dispelling any concerns that compliance with ethical principles may negatively impact financial performance.
As the demand for socially responsible investing continues to grow, it is likely that the performance of Shariah-compliant stocks will remain strong, making them an attractive option for investors looking for both financial returns and ethical considerations.
As of February 2023, the DJIM US Index had 154 constituents with a total market capitalisation of approximately USD 2.7 trillion. DJIM US tracks the performance of US companies that comply with Islamic principles such as avoiding investments in companies involved in gambling, alcohol, tobacco, and other prohibited industries.-/– www.halaluniverse.net
Disclaimer: Mr Mukhriz Mangsor is a Certified Financial Technician and an independent trader who contributes to www.halaluniverse.net on a regular basis. He focuses his attention on the technology stocks listed on Nasdaq. The content of this article are not recommendations to buy or sell a security. All information is intended as information for educational purposes only and not as investment advice. Readers are advised to seek professional investment advice from licensed investment advisors before investing.
