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CMDF-Bursa Malaysia Research Scheme (CBRS) has embarked on its third phase this month after a successful run since its inception five years ago. CBRS, which is open to participation by all companies listed on Bursa Malaysia, is aimed at ensuring that under-researched companies get adequate research coverage by analysts. This will ultimately support the Exchange's continuous call to facilitate informed investing via wider research coverage.
Bursa Malaysia's Chief Executive Officer, Dato' Yusli Mohamed Yusoff said, "Research coverage has an impact on trading activity and liquidity as it plays an important role in conveying the company's growth and business plans. As the market places high regard for research reports, we see the value of companies being researched having better opportunities of gaining investor attention."
The market feedback for the scheme has been positive with requests for more in-depth coverage. The CBRS reports will contain analyses and views on company fundamentals including industry prospects, its business and management, performance, earnings outlook and competitive landscape. This will give investors better appreciation of its content while facilitating comparison where applicable.
"Over the years, the scheme has been successful in assisting listed companies understand the importance of profiling and being transparent for greater investor awareness as well as in managing investors' expectations. Investors, particularly retail investors, are now savvier and more discerning, and thus rely on independent data or analysis to assist them in making and tracking their investments. Through CBRS, investors can gain free access to in-depth information on the company's potential, progress and updates that will allow them to make better informed decisions. Companies are urged to take advantage of the scheme and the incentives provided as this is an effective tool of conveying the company's value proposition to the investment community," added Dato' Yusli.
Initiated by Bursa Malaysia and subsidised by Capital Market Development Fund (CMDF) since June 2005, CBRS was established to generate investor interest in under-researched stocks by providing regular research reports on the counters that are covered by the scheme. Participating companies in this subsidised scheme are only required to pay half the cost at RM15,000 for a two year research coverage. The analyst reports are readily available for free on the Bursa Malaysia website with average downloads of 65,000 reports a month.
In conjunction with this third phase of the scheme, Bursa Malaysia is organising a nationwide roadshow for the next few weeks to further share benefits of the scheme and ways in which it can assist in profiling the listed companies better. The roadshow and seminar will be held in Kuala Lumpur, Penang, Johor and Sarawak.
