Tuesday, April 28, 2009

NSE listed firms and information

From a shareholder point of view, out of the 52 listed shares, only 13 (and I'm being charitable with ARM, Pan Afric, HFCK, Express and CMC which only have their 2007 annual report) meet minimum investor information standard. A real surprise has been Sasii Tea. The minimum standard for a share's website should be:
  1. Annual report-either as one humoungous file or in chunks. This is has all the information investor needs in one place. Its the company version of its truth and suffices for the best part of the yr before the next is produced.
  2. Share price updates
  3. AGM, dividend and other corporate announcements
  4. News page
  5. Products and services menu
  6. Org chart showing company structure and leaders
Contrast with LUSE where at least your broker will email you annual reports as they come through and even interim results. I won't even compare with FTSE, but its noteworthy that when I was trading Barclays, I used to get almost every bit of news out there even press cuttings via email.

Companies need to realise that a share is a product and its competing with anohter 50 at the NSE (including bonds); real estate; savings et al. So as a minimum a shareholder should be albe to go the website and find out latest shareprice, eps, where to buy the share etc.
Investor's hopes must be that fibre optic will usher NSE firms into the 21st century, the era of information.

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