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NZSE Could Also Do A Better Job; Use The Internet!

Published: Tue 7 Aug 2001 02:43 PM
NZ Listed Company Communication Given The Thumbs Down By Investors
NZSE Could Also Do A Better Job; Use The Internet! Investors Say
New Zealand listed companies are not effectively communicating with the investing public, according to findings released today.
Investment website ShareChat asked investors a number of questions on New Zealand's listed companies and stock exchange in a recent survey. In response to the question "How well do you think New Zealand companies communicate with the investment community?" a disturbing 58% answered "not very well" or "badly". Only 13% said companies communicate "reasonably" or "very well", the rest answering "average".
"This statistic shows that some New Zealand companies are still living in the communication dark ages," Ben Dutton, ShareChat's General Manager says. "It is troubling that New Zealand investors are encountering companies that seemingly have no interest in keeping the investing public informed."
When asked if investors would like to see New Zealand companies making more of an effort to communicate with investors on the Internet a resounding 96% responded "yes".
"It is a well established fact among international listed companies that the Internet provides one of the best communication platforms available," Mr Dutton says. "But if 96% of NZ investors think our listed companies could do a better job of communicating online, there must be a serious lack of understanding, or perhaps apathy, from our companies on how to use the Internet for their communications and Investor Relations."
"Perhaps New Zealand companies should start looking at themselves when questioning their sluggish share prices," Mr Dutton says. "After all, implementing a good communications strategy is one of the most effective ways of broadening your shareholder base and building value."
And the New Zealand Stock Exchange does not escape blame for NZ companies' communication failings When asked the question "What kind of job do you think the New Zealand Stock Exchange makes of distributing company information?" 38% of investors said a "bad' or "poor" job, and 49% said a "fair" job. Only 13% thought the NZSE does a "good" or an "excellent" job.
"Once again, the results show room for improvement. I'd expect an organisation like the Stock Exchange to score highly on a question like this," Mr Dutton says. "This result conveys that NZ investors believe the Stock Exchange could do a better job assisting listed companies with their communications needs."
"Through this survey, investors have made their feelings clear. New Zealand listed companies have to improve their communication with investors, both off and on-line. If our companies want to compete for the investor dollar in what has become a crowded and global equity marketplace, then they must lift their current performance," Mr Dutton concludes.
ENDS
About ShareChat:
ShareChat was launched as a sharemarket portal for New Zealand investors in August 1999 and quickly established itself as one of New Zealand's leading sharemarket information website. ShareChat now has around 25,000 active investors reading the website every month and is widely recognised as providing comprehensive coverage of the national and overseas sharemarkets.
In May 2001, ShareChat was acquired by Iguana2, a company majority owned by Solution 6 Holdings Limited. Based in Sydney, Australia, Iguana2 is a fast growing and innovative sharemarket information service provider. Iguana2 offers a wide range of investor relations, sharemarket data, sharemarket information and technology solutions to clients like Telstra, Access Brokerage, Fletcher Building, Telecom, BHP Steel and the Bank of New Zealand.

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