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)