KLSE Link Enhances Corporate Disclosure For Investors

The Kuala Lumpur Stock Exchange (KLSE) on October 8 launched the KLSE Listing Information Network (KLSE LINK), an internet-based facility, which will enhance corporate disclosure for investors. With the KLSE LINK, public listed companies and merchant banks will have a secure and efficient infrastructure to submit corporate announcements and information to the exchange. Investors will be able to have timely and easy access to these announcements via the KLSE web-page at www.klse.com.my. KLSE's Executive Chairman, Dato' Mohd Azlan Hashim said in enhancing the content and timeliness of corporate disclosure, the KLSE LINK makes an important contribution to the Exchange. "The KLSE LINK makes a valuable contribution in the implementation of our measures to achieve greater disclosure and market transparency," he said. The range of announcements available on the KLSE LINK include: public listed companies announcements; financial reports; circulars to shareholders & prospectus. In enhancing corporate disclosure, the KLSE LINK will provide company announcements that are readily available from the KLSE web-site; pre-formatted announcements, which enable the format for disclosure to be more consistent; the search and retrieval capability, offered through the KLSE web-site, will facilitate the use of the KLSE LINK for research and analysis; Announcements on Y2K disclosure, default in payment and request for suspension by public listed companies - in compliance with the issue of practice notes to KLSE's Listing Requirements - will be readily available through the KLSE LINK. Investors will also have the latest financial position of public listed companies via the KLSE LINK in compliance with quarterly reporting of financial statements by public listed companies. The information available via the KLSE LINK will also complement other information such as the flagging on trading screens of public listed companies which require closer monitoring by investors. Mohd Azlan said with enhanced corporate disclosure and greater availability of information via the KLSE LINK, investors will be able to make well-considered investment choices. "With investors relying more and more on corporate disclosure to make their investment decisions, public listed companies will be prompted to exercise greater vigilance in ensuring their announcements are accurate and properly disseminated," he added. The parallel run of the KLSE LINK began in October last year. To date, all 746 public listed companies and 12 merchant banks have been progressively linked to the system. A survey of the KLSE LINK conducted in July this year showed an overwhelming 90% of public listed companies and merchant banks agreeing that the KLSE LINK has improved market transparency with regard to corporate disclosure. Over 70% of public listed companies also indicated that the KLSE LINK fully met their expectations. Mohd Azlan said the KLSE LINK will truly be a meaningful improvement to corporate disclosure and investment when the issuers of information - public listed companies and merchant banks and the users of information, investors, continue to improve their use of the system. "Public listed companies need to ensure the timeliness and accuracy of their announcements whilst investors should make full use of such information to make their investment decisions," he said. From the latest number of hits on the KLSE web-site, which stands at 191,000 users daily for the month of September 1999, KLSE expects to get even more users with the access to the KLSE LINK.