CBRS was launched in January 2005 to promote wider research coverage of Bursa-listed companies. Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia Berhad (Bursa Malaysia) said, “Currently, a large part of our market’s activity revolves around a small group of established counters. To boost trading volume and velocity, we not only need to attract more investors but also broaden the daily trading base across a wider spectrum of counters.
“The CBRS reports are intended to spur greater interest in the larger pool of Bursa-listed companies by giving all investors - institutions and retailers alike, access to professional analyses that will give them a wider choice and help them make better informed investment decisions.”
Currently, the scheme has 100 participating companies covered by ten research houses.
A key focus of the reports has been in ensuring the information is presented in ways that make them easily understood by a broader spectrum of the investing public.
Yusli added, “The scheme’s reports are simple, easy to understand and yet provide enough details for the more sophisticated investors. The reports are also in standard formats to enable comparisons. We feel confident these reports will be well received by the investing public. At the same time, we also hope more companies will participate in the scheme.”
He mentioned that one of the advantages for companies covered under the scheme was the assurance of greater profiling via the reports, which will ultimately result in greater liquidity of the said stocks.
“It’s important for our listed companies to start really walking the talk in terms of subjecting themselves to independent review. Ultimately, investors will only feel comfortable when they are confident of the companies in which they are investing. The scheme is an easy, affordable way for companies to build their credibility as attractive investments. I strongly urge participation by more companies as this is an incentivised scheme. The next batch of companies is expected to be allocated in July 2005.”
CBRS is subsidised by CMDF and open to all companies listed on Bursa Malaysia Securities Bhd. Under the scheme, companies are only required to pay RM15,000 per year (an equivalent of 50% of the cost) for coverage by two reputable research houses.
