Investor confidence has dived following last month's terrorist attacks but most investors are holding on, says an ASB Bank investor confidence survey.
Investor confidence fell 18 per cent in September, from a net 17 per cent of respondents in August expecting better returns over the next year to a net
1 per cent expecting worse results.
The fall is the biggest since the survey began four years ago.
But ASB Bank Investments manager Roger Perry said that while the drop was sharp, investor confidence had not yet reached the low levels which followed some other big world events,
The biggest change in investor behaviour was among those favouring shares in public companies, falling from 13 per cent in the previous quarter to 10 per cent.
That could have been due to the fallout from the Air New Zealand saga, said Mr Perry.
Confidence in managed funds and bank term deposits was up slightly, both rising 1 point over the previous quarter to 21 per cent and 13 per cent respectively. Residential rental property was unchanged on 13 per cent.
While some investors were nervous following the September 11 attacks on Washington and New York, only a few had closed their investments, said Mr Perry.
Investors had taken some comfort in the prompt Government response to the attacks and would have been encouraged that world share markets recovered in early October.
"While investors are likely to be watchful over the months ahead, I would not be surprised if we saw a modest rebound in investor confidence from September levels in the next survey," said Mr Perry.
The survey is based on a nationwide survey of 750 to 1000 people.
For the quarter, confidence fell from a net 12 per cent positive to net 10 per cent positive.
- NZPA
