Investors remain confident in September quarter: ASB

By NZPA

Monday 18th October 2004

Investors remain optimistic the good times will keep on rolling and confidence in the September quarter remained high, according to the latest ASB Bank Investor Confidence Survey released today.

The survey showed confidence remained over a net 20% for the second consecutive quarter, the first time it has stayed above the 20% mark for more than one quarter.

Overall confidence remained unchanged from the previous quarter at 21%.

The bank said in a commentary that confidence levels have only passed the current net 21% level once in the past 10 years. That was in the last quarter of 2003, when investor confidence peaked at a net 24%.

ASB said the level of confidence was encouraging given the high returns to investors across a range of asset classes over the past 12 months, which would normally curb short-term expectations.

" 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," the bank said.

ASB said a feature of this quarter's results was the growing confidence of sharemarket investors, a trend that has been developing over the past 12 months.

The gross return of New Zealand shares over the September quarter was 5.1% and 24% over the September year.

Of respondents with shares as their main investment, 67% thought shares would 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.

Age is a major factor influencing confidence and the types of assets people invest in. Those under 60 have greater confidence in residential property and managed funds while those over 60 have greater confidence in term deposits.

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