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ASB Investor Confidence Report Q1 2013: Share Market Up
Investor Confidence Grows As Interest In the Share Market Picks Up
· Overall
investor confidence hits highest point in two
years
· Optimism in share market
returns increasing
· Canterbury
leads the nation in investor confidence
Investor confidence is gaining momentum according to the latest ASB Investor Confidence Survey.
ASB Head of Wealth Advisory Jonathan Beale says, “The ASB Investor Confidence Index has jumped 5 points during the three months to March 2013 to a high of net 18%. These confidence levels have not been seen since the end of 2010.”
Mr Beale believes that contributing to investors’ optimistic mood is a rising confidence in public shares.
“Kiwi investors have, over the past few years, regarded the share market with an air of caution in comparison to some other investment classes such as investment property and term deposits. However, it appears that public awareness surrounding recent Government SOE share offers has put the share market firmly back on retail investors’ radar this quarter. While the percentage of respondents believing term deposits and managed investments will yield the best returns is down 2 points each this quarter, expectations that public shares will have the highest returns has jumped up 3 points to sit at 10% of respondents.”
Mr Beale also notes that this may indicate Kiwi investors are seeking higher yields against the background of a more benign risk environment and higher returns from shares as the result of a robust stock market.
Investor confidence in Canterbury has increased by 10 points to a new high of net 20%, the highest it has been in the region since 2008. This result also marks the first time since 2011 that confidence has been higher in Canterbury than the rest of the country.
“Cantabrians are becoming increasingly confident about general prospects for the region as the post-earthquake recovery becomes a reality and the rebuild gets underway.”
KiwiSaver retains its solid popularity with local investors, sitting steady on 14%. Mr Beale predicts that Kiwis will remain confident in the scheme as good returns continue and balances grow with the minimum contribution rising to 3%.
Expectations that rental property offers the best returns remains the highest of all the investment classes, sitting top of the table at 19% of respondents.
ENDS
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