Market confidence upbeat
WELLINGTON: New Zealanders’ confidence in the country’s financial markets has dipped a touch but stays relatively upbeat in an increasingly uncertain and volatile environment, and people are largely comfortable about the stability of markets and the economy, a Financial Markets Authority survey shows.
About 62% of 1011 people surveyed by Buzz Channel are either fairly or very confident in New Zealand’s financial markets, down from 65% a year earlier, but still higher than the previous four years, the survey shows. The FMAcommissioned survey again shows a stark divide between investors and noninvestors, with 66% of investors confident in the local markets and just 41% of noninvestors upbeat.
The most common reason for being confident was that markets are doing well or are stable, at 16%, followed by general positivity or a lack of bad news at 14%, and 10% pointing to a stable economy. Of those without confidence, 19% said they had a lack of faith generally, with 15 saying they did not follow markets, and 11% were generally uncertain.
The regulator’s survey matches similar stability in ASB Bank’s latest investor confidence report, which increased to a net 21% optimism in the June quarter from 20% in March. Like consumer confidence, ASB’s gauge of investor sentiment has remained relatively upbeat in contrast to the growing pessimism among businesses. Act ing 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% of survey respondents had at least one investment in New Zealand’s markets and KiwiSaver was the most common at 63%. Still, KiwiSaveronly investors were less knowledgeable about investment principles such as diversifying a portfolio and understanding that a bigger return typically accompanies a higher risk.
About twothirds of investors received investment materials, although just 55% found them useful in making an informed decision, a level which has been relatively static over the sixyear life of the annual survey. — BusinessDesk