يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوٓا۟ أَمْوَٰلَكُم بَيْنَكُم بِٱلْبَـٰطِلِ إِلَّآ أَن تَكُونَ تِجَـٰرَةً عَن تَرَاضٍۢ مِّنكُمْ ۚ
O believers! Do not devour one another’s wealth illegally, but rather trade by mutual consent. (Qur’an, 4:29)
Market Snapshot
▲ S&P 500 +4.73%
▲ SPUS +4.84%
▲ MSCI World Islamic +4.16%
*Market data for last week ending Friday
Last Week’s Review
U.S. Presidential Election: On November 5, Donald Trump became the 47th president of the United States. This outcome prompted a significant rally in the financial markets, as investors reacted positively to the prospect of a return to business-friendly policies of Trump’s previous term. The S&P 500 saw its best performance in months, and the Dow Jones Industrial Average and Nasdaq also posted strong gains.
Federal Reserve Rate Decision: On November 7, the Federal Reserve cut interest rates by 25 basis points to support economic growth amid uncertainty. Markets responded positively, viewing the move as proactive.
Chinese stimulus package: China unveiled a $1.4 trillion, five-year stimulus plan to tackle hidden debt among local governments, aiming to bring down the debt from $2 trillion to $321.26 billion by 2028.
This Week’s Outlook
Shopify Earnings (November 12): Shopify (SHOP) will report Tuesday. Analysts estimate $2.91B in revenue (+69.78% YoY) and $0.37 in earnings per share (+54.17% YoY).
Eurozone Inflation Data (November 15): The release of Eurozone inflation figures will be closely watched, as it could shape expectations for the European Central Bank’s monetary policy decisions.
Curated Reads
Data Centers: The Backbone of the AI Boom
Data centers are essential for the AI boom to continue, providing the computing power and infrastructure needed for rapid advancements. With upcoming policies likely to promote technological growth, the expansion of data center capabilities will play a pivotal role in supporting the next wave of AI innovation. [Read]
Europe’s Economy at a Crossroads
The European economy faces significant challenges as it contends with shifting U.S. policies and internal political upheavals. Expected U.S. tariffs could impact key European sectors and undermine the region’s export-driven growth. With political instability adding to the uncertainty, the outlook for Europe’s economy remains unclear. [Read]
The Bull Run May Be Slowing
The S&P 500 has enjoyed exceptional gains over the past two years, but history suggests that maintaining this level of performance is uncommon. With average returns expected to revert to the mean, 2025 may bring a more tempered outlook. Investors should be prepared for a possible shift away from recent highs. [Read]
Chart of the Week
Indivior (INDV) is a global pharmaceutical leader focused on developing treatments for substance use disorders and serious mental health conditions. The company’s targeted therapies for opioid dependence have solidified its role as an important player in the healthcare sector. Notably, healthcare has historically been one of the top-performing sectors for long-term returns on capital, making Indivior a noteworthy consideration for investors.
Financially, Indivior maintains high profit margins and a well-managed debt profile, reflecting strong fiscal health. The company has shown impressive and growing returns on capital, highlighting its operational efficiency and potential for sustained growth. These strengths have attracted the attention of renowned investor Howard Marks, who recently took a position at an estimated $15. With the price now at $10, Marks has significantly increased his stake, signaling confidence in Indivior’s future prospects.
Current Price: $10.25
Target Price: $20
Disclaimer: This information is accurate as of the date of publishing and is not intended as investment advice.
Your Questions
How is Purification of stocks calculated?
There are two popular methodologies followed in the industry. The S&P Shariah one requires purification of dividends only. The percentage of impure income a company has, for example 2%, must be taken out from the dividends you receive.
The AAOIFI methodology requires purification every financial period, quarterly for example, regardless of whether the company gives out a dividend or not. This purification is based on impure income per share and multiplied by the number of shares you own. If you own a stock for less than one financial period, then no purification is required.
At Muslim Xchange, you may upload or connect your portfolio and our tool automatically calculates the purification amount based on AAOIFI methodology.
(Answered by Faraz Omar, AAOIFI Certified Shariah Advisor and Auditor)
You may ask your questions in our Community or email them to support@muslimxchange.com
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