Boost for analysts

The ASX equity research subsidy program is a trial scheme introduced to subsidise analyst research so smaller companies receive more analyst coverage and larger research houses consider covering firms they might otherwise ignore. The article says the ASX has extended this trial for another year.

According to the article, the ASX extended the trial because 60% of the companies covered reported an increase in turnover of their securities over the past year, suggesting the program is helping boost trading activity.

The scheme is aimed primarily at smaller companies that lack analyst coverage and at encouraging larger research houses to cover companies they would otherwise ignore, as stated in the article.

An increase in securities turnover generally means more trading activity and liquidity, which can make it easier to buy or sell shares and improve price discovery. The article notes that 60% of covered companies reported higher turnover during the trial.

Improved analyst coverage can provide more research, commentary and data to help inform investment decisions. The article explains the subsidy was designed to get analysts to cover smaller or previously overlooked companies, which could give investors more information to work with.

No. The article states the ASX runs a trial equity research subsidy program and has extended it, but it does not provide specific details on payment mechanics or which parties receive subsidies.

The article describes the scheme as a trial and reports the ASX has extended that trial for another year. It does not say the program has become permanent.

Everyday investors can monitor whether covered smaller companies gain more analyst reports and improved trading liquidity, use that research as one input in decisions, and remain cautious—this article highlights increased turnover for many companies but does not promise investment performance.