NZ investor confidence remains resilient
Investor confidence in New Zealand has shown ongoing resilience despite the gloom of the Eurozone crisis and continued low interest rates, a survey has found.
According to the quarterly ASB Investor Confidence Index, confidence dropped only one point to 5 per cent during the three months to January 2012 when the threat of a crisis in Europe intensified.
Confidence is up sharply in Canterbury, jumping from 1 per cent to 12 per cent over the three month period, showing sentiment in the region is recovering after the unsurprising dive in confidence following the February 2011 earthquake, the survey showed.
It is expected that confidence will grow further in upcoming months as the rebuilding of Christchurch begins in earnest.
Investment classes
Term deposits remain the most popular investment class for the seventh consecutive quarter, with 19 per cent of respondents believing they will give the best returns, the survey said.
Rental property remains the second most popular investment, rising from 13 per cent to 14 per cent, while KiwiSaver dropped two points to 11 per cent. This was followed by public shares, bank savings accounts and managed investments, all of which scored an equal 9 per cent.
Commenting on the findings, ASB’s head of private banking and wealth management, Jonathan Beale, said: “Since Q3 2012, shares have been creeping upwards in popularity from 5 per cent to 9 per cent, as the investment that gives the best returns. Meanwhile bank savings accounts have slowly dropped.
“Both of these trends are set against a period of low interest rates indicating investors are perhaps looking beyond bank savings accounts to investments that offer higher potential returns in a low interest market” he said.
- Categories
- New Zealand
- Tags:
- ASB Investor Confidence Index
- Author:
- Angela Faherty, afaherty@financialpublications.com.au
- Article Posted:
- February 14, 2012
Review this content
Fields marked with an asterisk (
) are mandatory.