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

 


Kiwis more confident about financial markets, FMA says

New Zealanders growing more confident about financial markets, FMA says

By Suze Metherell

May 20 (BusinessDesk) – Public confidence in New Zealand’s financial markets is growing, particularly among middle-income earners, according to a survey by the Financial Markets Authority.

Of the 1,015 people surveyed, 59 percent expressed overall confidence in financial markets, up from 54 percent in last year’s survey, according to the Colmar Brunton poll conducted on behalf of the FMA. Middle-income earners’ faith in markets rose to 69 percent from 56 percent.

Sharemarket activity has been buoyed by the government’s partial privatisation of electricity companies MightyRiverPower, Meridian Energy and Genesis Energy, and a further sell down of Air New Zealand while growing KiwiSaver funds have stoked demand for equities.

“The fact those earning between $50,000 and $100,000 per year are a lot more confident points to broader participation in share markets and financial markets more generally,” said Rob Everett, chief executive of the FMA. “This reinforces the increasing importance of KiwiSaver, as people watch their balances grow.”

Some 75 percent of those surveyed held some kind of investment, a slight increase from last year’s 72 percent. Of those who invest, 61 percent were confident in the markets, a gain from 58 percent in 2013 and of those without investments 52 percent were confident, compared to 41 percent in 2013.

The NZX 50 Index, New Zealand’s benchmark index, has been one of the best performers in the Asia-Pacific region year-to-date, advancing 9.2 percent, compared to a gain of 1.1 percent for Australia’s S&P/ASX 200 Index, while Hong Kong’s Hang Seng Index’s fell 2.6 percent and Japan’s Nikkei 225 Index dropped 14 percent.

Under the new Financial Markets Conduct Act 2013 investment material must be simpler and easier for retail investors to understand. According to the survey, of those with investments 53 percent said investment information received was helpful in making an informed decision about investing.

“With increasing confidence in the infrastructure and its regulation we’d hope people become more confident about participating in the markets while understanding that markets move in cycles and positive outcomes are not guaranteed,” Everett said.

This is the second year the authority has surveyed the public.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news