Schroders Plc vows to tap RI capital market
Schroders Plc vows to tap RI capital market
JAKARTA (JP): Schroders Plc, one of Britain's major merchant
banks, pledged a stronger commitment yesterday to tapping the
potential of the Indonesian capital market despite continued
drops in share prices over the last few months.
George Mallinckrodt, the visiting chairman of the British
bank, said that the long-term prospects of the Indonesian market
remained good, even tough the exchange's condition was not very
favorable at present.
The bank wanted a stronger presence here because it believed
in the long-term prospects of the country's economy, Mallinckrodt
said at a reception celebrating the inauguration of PT Schroders
Indonesia as a full securities house.
Schroders Indonesia, 85 percent owned by Schroders Plc and 15
percent by the Panin Group, started its operation in Indonesia in
1991 as a fund manager. Last year the company received a new
license to operate in underwriting and brokerage.
It has more than doubled its staff to 43, and its paid up
capital had increased from Rp 1 billion to Rp 11 billion (US$5.11
million).
Bill Foo, Schroders Indonesia's president, said that the joint
venture securities firm planned to further raise its investment
in the local equity market in the second semester of this year
when the market is expected to gain ground from its current
bearish condition.
He said that the market's bearish condition in the first
semester would affect the business somewhat but that he believed
the company's turnover would remain stable at around Rp 1
trillion this year due to the expected improvement in market
performance in the second semester.
In 1994, Schroders recorded transactions of around Rp 1
trillion, including the issuance of $70 million in a loan for PT
Jakarta International Hotels and Development, $80 million for the
development of Batamindo's industrial estates in Batam and rights
share issuance for PT Sekar Bumi, PT Evershine Textile and PT
Modernland Realty.
He said that share prices on the Jakarta Stock Exchange, which
suffered significant drops over the last few months, were
expected to gain ground in the second semester of this year,
partly because of an expected increase in corporate earnings.
(hen)