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


Investor Confidence - Optimistic And Confident

Investor Confidence - Optimistic And Confident

Statement made by James Mitchell, Head Of Relationship Banking and Financial Services, ASB Bank

The mood of the country’s investors remains optimistic, with confidence as measured by the ASB Bank Investor Confidence Survey remaining in excess of a net 20% for the second consecutive quarter.

Only once in the past 10 years has confidence levels eclipsed the current net 21% level, and that was in the last quarter of 2003 when investor confidence peaked at a net 24%.

Never before has investor confidence stayed above the net 20% mark for more than one quarter.

Given the high returns that have been achieved by investors across a range of asset classes over the past 12 months, which has a natural tendency to curb immediate future expectations, this level of confidence is extremely encouraging.

It also has to be seen against the backdrop of widespread talk of a New Zealand economy about to slow and concerns about the effect of high oil prices on the global economy.

A feature of this quarter’s results is the growing confidence being shown by sharemarket investors, a trend that has been developing over the past 12 months.

The New Zealand sharemarket has been performing well and the gross return of New Zealand shares was 5.1% over the September quarter as measured by the NZX50 Index, and 24% over the 12 months to September 2004.

Of those with shares as their main investment, 67% consider shares will provide the best investment returns. This confidence is up strongly on 2003 and now puts share investors on a par with residential property investors, with a similar number ( 67% ) remaining convinced that property offers the best return.

It would appear that the strength of the NZ economy is encouraging investors in general to look to the promising long-term prospects for New Zealand and, in particular, is encouraging property investors to look beyond the present cyclical housing slowdown and see the bright longer term outlook for housing. Age is a major factor influencing confidence and attraction of an investment asset class. Those under 60 have greater confidence in residential property and managed funds while those over 60 have greater confidence in term deposits.

The confidence levels of those whose main investment is in term deposits has doubled to a net 24% over the figure for the previous quarter as they anticipate term deposit rates will rise on the back of expected increases in the Official Cash Rate.

© 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>>


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>>


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>>


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>>


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>>


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>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news