ASX tumble reinforces need for effective communication
The ASX's recent plunge signals the need for effective corporate communication strategies to help ease investor concerns in times of heightened market volatility.
By Taylee Lewis*
The 2.7%, or 166 point, fall marks one of the worst trading sessions for the ASX since February this year. According to the Australian Financial Review, technology stocks were the hardest hit with many names down around 9%, 10% and 11%.
October's plunge was not limited to the Australian market, with the Australian Financial Review reporting a 3.2% and 4.1% drop in the Dow Jones and Nasdaq respectively.
During times of market uncertainty, it is essential that companies communicate with their investment community and stakeholders through targeted communication.
Providing information such as stock performance in context, reiterating investment strategies and long-term goals, as well as offering insight into the event that is affecting performance can help maintain trust and limit further apprehension.
Simply, the lack of information only serves to intensify concerns.
Companies impacted by the share market turmoil need to ensure that constructive information is quickly communicated through the most appropriate channels. And inaccuracies and misinformation must be corrected immediately. Companies that lack the in-house capability to deal with the situation need to find support from outside without delay.
*Taylee Lewis is a financial and corporate communications expert. She was previously a financial journalist with Sterling Publishing's stable of publications, including Investor Daily, Adviser Innovation, Fintech Business, and ifa magazine.