Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Confidence Remains Low But Not For Long Says ASB

MEDIA RELEASE

29 JANUARY 2002


Investor Confidence Remains Low But Not For Long Says ASB Bank

Investor confidence remained weak over the last quarter of 2001 with a net 4% of respondents expecting worse returns from investments over the next year, in ASB BANK’s latest Quarterly Investor Confidence Survey.

The survey shows 26% of investors expect their returns to be worse than last year, an increase of 8% from the previous quarter, while just 22% expect their returns to be better, down from 27%.

Roger Perry, ASB BANK’s Chief Manager, Investments, believes that the low level of investor confidence is not likely to last long.

“In the months since the September 11 terrorist attack all major investment markets have shown positive returns. Also, the war in Afghanistan is being resolved quickly, and there are favourable prospects for a synchronised economic recovery in Europe and the United States. Consequently we believe investor’s confidence will improve over the coming year.

“The survey shows that those who have their investments mainly in term deposits, where interest rates fell steadily through 2001, are the most pessimistic about prospects. Investors in shares and managed funds are moderately pessimistic, reflecting the volatile share market conditions they have experienced over the last year. In contrast, investors in small business and commercial property are quite optimistic about the future, perhaps indicating the robustness of the domestic economy,” he says.

Older investors are significantly more pessimistic than younger investors. A net 19% of those aged over 60 expect worse returns, whereas a net 7% of those aged under 30 expect better returns. Women are more pessimistic than men: a net 10% negative to a net 2% positive. South Islanders were considerably more pessimistic; a net 12% negative compared to North Islanders at a net 2% negative for the Lower North Island and a net 1% negative for the Upper North Island.

When respondents were asked which investment they thought would give the best return in the year ahead, direct share investments experienced a fall in support. They were favoured by just 8% of respondents, down from 10% in the September quarter, and 13% in the June quarter. Term Deposits and Residential Rental Property remained steady, favoured by 13% of respondents. Investors still prefer Managed Investments as the investment type that they expect to give the best return. They are favoured by 21% of respondents, and this has remained steady for 12 months.


- The ASB BANK Quarterly Investor Confidence Survey is a nationwide survey, which has been undertaken every quarter since May 1998 interviewing a sample of up to 1000 respondents.


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news