State of IR Websites - SGX Edition

A company's investor relations (IR) website is not just a fiduciary need, it is a powerful tool for building investor confidence and transparency. Having a good IR website allows financially solid businesses to capture the attention of stock market analysts and own the narrative of how the company is perceived.

As stock markets become more accessible for not just institutional investors but also retail investors via trading apps, it is even more important that IR teams at listed companies maintain  useful investor relations websites.

Also SGX has faced challenges in keeping pace with its regional exchanges - Hong Kong Stock Exchange and now the Thailand Stock Exchange, especially in terms of traded volumes and market vibrancy.

So in order to understand more about how these IR website have an impact, we created a study by manually going through the IR websites of a random set of Singapore Listed companies.

It gave several insights into how many SGX-listed companies are underutilizing this important asset and missing out on several aspects.

Comparison with HKEX & SET

SGX is experiencing tough rivalry from its traditional competitor the Hong Kong Stock Exchange in addition to the upcoming Thailand Stock Exchange, both of which are becoming active and increasing their trading volumes. This means the Singapore-listed companies should use strategies that enhance investor confidence and market activity in the exchange.

We noticed that one such strategy is improving the quality of IR (Investor Relations) websites. Not only does it serve as a hub for investor communication, but it also contributes to increased trading volumes according to the study. Lets look into that.

The Current State of IR Websites on SGX

Our findings shed light on a concerning reality:

• Only 59% of SGX-listed companies have a functioning IR website. Technical issues and lack of accessibility prevent companies from effectively communicating with investors.
• Just 6.8% provide investor education content. Topics like shareholder rights and financial report explanations are critical for building investor trust but are often missing.
• Only 25.7% offer direct stock information. A lack of clear, real-time stock data hurts transparency and search engine visibility.
• Less than 10% achieve a quality score of 90+. According to the main factors like the presence, technical implementation, content quality & availability Konigle has tried to assign a quality score out of 100, and not even 10% have achieved 90%+.
• And 40% of the listed companies have a quality score of less than 50.

What Was Evaluated in the Study?

The study assessed IR websites on the following criteria:

• IR Website Presence: Whether a dedicated IR website exists for the company.
  
• IR Website URL: Accessibility and clarity of the URL for the public.
  
• HTTPS Usage: Ensuring security protocols are in place.
• Company Information: Availability of essential company details in the IR page.
  
• Mobile Responsiveness: Compatibility with mobile devices.
• Lighthouse Scores: Performance, accessibility, best practices, and SEO.
• Organic Traffic & Backlinks: Indicators of online visibility and authority.
• Investor-Specific Features: Inclusion of investor events, press releases, recent news, and email alert subscriptions.
• Financial Reports: Availability of quarterly earnings, annual reports, and filings.
• Stock Information: Accessibility and presentation of stock data.
• Leadership and Governance Information: Details about company leadership and governance policies.
• Investor Education Content: Resources to educate shareholders.
• ESG Information: Coverage of environmental, social, and governance topics.
• Search Visibility: Rankings for " stock price" and company name searches.

Why an IR Website Is Important for Stock Performance

A well-optimized IR website doesn’t just for the information. Here are a few key findings from the study:

• Mobile responsiveness correlates with 8x higher trading volumes.
• IR websites with company information included shows a higher trading volume (47x).
  
• Stock information availability increases trading volumes by 1.6x. Including stock trends and historical data fosters trust and transparency.
• Press releases lead to 1.4x higher trading volumes. Regular updates keep investors informed and engaged, enhancing market confidence.

Benefits of a good IR Website

Here are some benefits for companies other than the trading volumes:

Serves as the primary source of investor information

Companies can have full control over providing vital information and prevent any gaps between them.  By being in control of all the critical updates and resources, you prevent misinformation and establish yourself as a reliable source of information.

Regulatory compliance

Many markets, including SGX, have strict requirements for investor communication for these companies. A well-maintained IR website helps ensure that you meet these regulations, avoiding penalties and maintaining investor trust.

Market communication

Consistently updating your IR website with news, press releases, and event details ensures better communication with the market. This keeps stakeholders informed and improves transparency.

Engages stakeholders

By making use of features like email subscriptions, event notifications, and downloadable resources enables the companies to build stronger connections with investors.

How Konigle Can Help

Building and maintaining an IR website doesn’t have to be complex, expensive or require technical experience. With Konigle’s AI-powered website builder, you can create a professional IR website pre-equipped with:

• Mobile optimization.
• Real-time stock updates.
• ESG and investor education content.
• Press releases and financial reporting.
• and much more

Get started with building your IR website with Konigle in just a few clicks.