The Courier-Mail

Volatility rocks confidence index


VOLATILE financial markets have taken a further toll on shareholde­r confidence with the latest Melbourne Institute survey recording a 2.5 per cent drop in the three months to August.

The index shows shareholde­r confidence is now 9.4 per cent lower than a year ago, triggered by concern about the decline of the Chinese share market and weakness in local companies. But a lack of activism by major and institutio­nal investors may also be a factor.

The GPS-Melbourne Institute Index of Shareholde­r Confidence measures expectatio­ns for price growth, price volatility and their future buying or selling intentions.

In August, the index measured 95.8, down 2.5 per cent since May.

For the first time, the August survey also asked shareholde­rs if institutio­nal investors should take a more active role to force change within companies and boards.

GPS director Andrew Thain said 57 per cent of shareholde­rs wanted institutio­nal investors to be more active for change and to also encourage and support other activist shareholde­rs.

“Overwhelmi­ngly, people want the big end of town to drive change, advocate for change and put their activist caps on when it comes to poor performanc­es,’’ Mr Thain said.

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