Securities research weak

Securities research weak

JAKARTA (JP): Indonesian securities companies are mostly still weak in research activities, says the top executive of the capital market watchdog.

Bacelius Ruru, chairman of the Capital Market Supervisory Agency, said yesterday that many local securities firms did not even have research departments.

"Commercial securities databases are incomplete, less than fully reliable, and not readily accessible," he said in his opening address at a one-day research workshop.

Ruru said that the problem was not a lack of information but deficiencies in the compilation, analysis and delivery of information.

He said that the establishment of research departments was essential in supporting capital market activities because, he said, without reliable research, investors had little incentive to engage in stock trading activities.

"Securities companies that recommend investments without proper research are certain to have difficulty in creating a client base," he said at the workshop, which was co-sponsored by the Capital Market Supervisory Agency, Goldman Sachs and PT Bahana.

In developed countries, Ruru said, professionally prepared information and analysis regarding securities was readily available, often free of charge.

He said that in the United States, for example, investors could conduct research in a public library without charge or consult publications by Moody's, Standard & Poors and Value Line, as well as a variety of research newsletters published by investment advisors. (hen)