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

 

NZers' confidence in markets remains relatively upbeat

NZers' confidence in markets remains relatively upbeat on economic stability: FMA survey

By Paul McBeth

July 12 (BusinessDesk) - New Zealanders' confidence in the country's financial markets dipped a touch but stayed relatively upbeat in an increasingly uncertain and volatile environment, with people largely comfortable about the stability of markets and the economy, a Financial Markets Authority survey shows.

Some 62 percent of 1,011 people surveyed by Buzz Channel are either fairly or very confident in New Zealand's financial markets, down from 65 percent a year earlier, but still higher than the previous four years, the survey shows. The FMA commissioned survey again shows a stark divide between investors and non-investors, with 66 percent of investors confident in the local markets and just 41 percent of non-investors upbeat.

The most common reason for being confident was that markets are doing well or are stable, at 16 percent, followed by general positivity or a lack of bad news at 14 percent, and 10 percent pointing to a stable economy. Of those without confidence, some 19 percent said they had a lack of faith generally, with 15 saying they didn't follow markets, and 11 percent were generally uncertain.

"Investor sentiment and market performance have typically driven some of the scores in this survey," chief executive Rob Everett said in a statement. "It is heartening to see that confidence, while dipping slightly, has been broadly stable in the event of significant issues both offshore and in local financial services."

The regulator's survey matches similar stability in ASB Bank's latest investor confidence report, which increased to a net 21 percent optimism in the June quarter from 20 percent in March. Like consumer confidence, ASB's gauge of investor sentiment has remained relatively upbeat in contrast to the growing pessimism among businesses, and Acting Prime Minister Winston Peters has taken to pointing to recent records on the S&P/NZX 50 index as a better gauge of business sentiment.

About 84 percent of survey respondents had at least one investment in New Zealand's markets, with KiwiSaver the most common at 63 percent. Still, KiwiSaver-only investors were less knowledgeable about investment principles such as diversifying a portfolio and understanding that a bigger return typically accompanies a higher risk.

About two-thirds of investors received investment materials, although just 55 percent found them useful in making an informed decision, a level which has been relatively static over the six-year life of the annual survey.

Awareness of the regulator was stable at 41 percent, although confidence that markets were being effectively regulated shrank to 55 percent from 66 percent a year earlier, with a 9 percentage point increase in people saying they didn't know. The FMA survey said that swing was probably down to a change in how the question was asked.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Manawatu-Whanganui Projects: PGF Top-Up To Rural Broadband Roll-Out

The government has effectively raided the $3 billion Provincial Growth Fund to top up the budget for the second phase of its rural broadband initiative, filling in mobile 'black spots' and ensuring broadband is available to marae that don't have access now. More>>

ALSO:

Other Windy Cities: Auckland-Chicago Named A Top 10 ‘Most Exciting’ New Route

The inclusion of Auckland-Chicago on Lonely Planet’s Where to fly in 2019? The 10 most exciting new flight routes list comes just two weeks before Air New Zealand prepares to celebrate its inaugural flight to Chicago’s O’Hare International Airport on 30 November. More>>

Deadly Strain: ESR Ups Its Reporting On Meningococcal Disease

The increasing number of cases of Group W Meningococcal disease (MenW) has prompted ESR to increase its reporting on the disease to the Ministry of Health. ESR has upped its reporting to weekly. More>>

ALSO:

Very Small Things: "Game-Changing" 3D Printing Technology Launched

New Zealand microfabrication researchers Andrea Bubendorfer and Andrew Best, the co-inventors of a new way of fabricating very small things with Laminated Resin Printing (LRP), are part of Callaghan Innovation’s MicroMaker3D team launching the new patent pending technology in the US this week. More>>

ALSO: