Islamic Capital Market and Islamic Stock

ϭϱ x Preservation and protection of wealth x Transparency in wealth and finance x Development and investment of wealth x Prevention of harm and hardship in wealth and finance x Ensuring jsutice in circulation of wealth. The consideration of Maqasid al Shariah in finance and economic activities gives the way to achievement of the noble objectives of the Shariah. These objectives give value to finance, banking, trade and all business transactions. The implementation of Maqasid al Shariah will enhance the performance of finance and trade and establish justice in the business community and society at large. Furthemore, the achievement of Shariah objectives in business transactions create happiness and satisfaction and fulfill the economics needs of the society Lahsasna Hassan, 2011.

2.1.4 Risk and Return on Stock

Return always following the risk. To get high return investors also have to face the high risk. According to Syukma2011, there was positive relationship between risk and return, therefore the higher expected return implies the higher possibility of risks in stock investment.

2.1.5 Jakarta Islamic Index

Jakarta Islamic Index JII was initially launched by IDX which was known as JSX at that time in collaboration with PT Danareksa Investment Management on July 3, 2000. However, in order to generate longer historical data, the base date for the calculation of JII is using January 2, ZLWK LQGH[ EDVH QXPEHU RI 7KH PHWKRGRORJ\ IRU -,,¶V calculation is the same that used in Jakarta Composite Index JCI that is ϭϲ based on the Market Value Weigthed Average Index using Laspeyres formula. Sharia Shares that became the JII constituents are the 30 most liquid sharia that have large market capitalization. IDX conducts reviews on JII every six months, adjusted with the period of DES issuance by Bapepam- LK. After the selection of Sharia shares by Bapepam-LK, which is released as DES, IDX continued the selection process based on its trading performanceExchange, 2013. Below is The JII selection process performed by IDX based on the performance of sharia shares trading : 1. Selected stocks are stocks that are included in DES issued by Bapepam LK. 2. From these Sharia stocks, IDX select 60 top stocks based on the ODVW\HDU¶VPDUNHWFDSLWDOL]DWLRQ 3. From these 60 top stocks by market capitalization, IDX will then select 30 top stocks EDVHGRQWKHLUODVW\HDU¶VOHYHORIOLTXLGLW\LQ the regular market. The List of JII stock issued by Indonesia Stock Exchange is based on Sharia Securities List at the period Desember 2012 - Juni 2013 issued by Bapepam-LK are as follows: Table2.1 Stocks Listed in Jakarta Islamic Index June ± November 2014 No Code Stocks Name Note 1 AALI Astra Agro Lestari Tbk Fixed 2 ADRO Adaro Energy Tbk Fixed ϭϳ 3 AKRA AKR Corporindo Tbk Fixed 4 ASII Astra International Tbk Fixed 5 ASRI Alam Sutera Realty Tbk Fixed 6 BMTR Global Mediacom Tbk Fixed 7 BSDE Bumi Serpong Damai Tbk Fixed 8 CPIN Charoen Pokphand Indonesia Tbk Fixed 9 CTRA Ciputra Development Tbk New 10 EXCL XL Axiata Tbk Fixed 11 ICBP Indofood CBP Sukses Makmur Tbk Fixed 12 INCO Vale Indonesia Tbk New 13 INDF Indofood Sukses Makmur Tbk Fixed 14 INTP Indocement Tunggal Prakarsa Tbk Fixed 15 ITMG Indo Tambangnya Megah Tbk Fixed 16 JSMR Jasa Marga Persero Tbk Fixed 17 KLBF Kalbe Farma Tbk Fixed 18 LPKR Lippo Karawaci Tbk Fixed 19 LSIP PP London Sumatra Indonesia Tbk Fixed 20 MNCN Media Nusantara Citra Tbk Fixed