Investor confidence improving, survey says

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Investor confidence is on the up, with most keen to put more money in, a survey shows
Photo: 123RF

Most investors plan to increase their investments over the coming year as they feel more confident about market conditions, a new survey says.

The annual Chartered Accountants Australia and New Zealand (CA ANZ) investor confidence survey showed confidence was improving after a difficult 2022.

The report surveyed more than 500 local retail investors, mostly holding more than $10,000 on the share market on top of other investments, such as managed funds, property and superannuation portfolios.

CA ANZ reporting and assurance leader Amir Ghandar said the survey showed there was some hope for the markets.

“After a rough 2022 where confidence plunged due to fears around a continuing pandemic and global political unrest, this survey shows there’s a ray of light shining on both local and overseas markets,” Ghandar said.

“Confidence in capital markets outside the country has jumped by eight percent, while confidence in domestic capital markets and domestic publicly listed companies have had modest increases – and I think that will be welcome news given the multi-point plunges shown in last year’s survey,” Ghandar said.

Confidence in capital markets outside the country is up eight percent, Amir Ghandar says.
Photo: Supplied / Chartered Accountants Australia and New Zealand

He said mum and dad investors were returning, with 56 percent of respondents looking to increase the scale of their investment during the coming year.

However, Ghandar said confidence was not back to 2021 levels.

“Investors now see rising interest rates as the biggest risk to the domestic economy, with 17 percent saying it’s their main concern, up 10 percent on last year. Concern about global political unrest and ongoing pandemics have fallen to 16 and 11 percent respectively,” he said.

The survey comes after analysis earlier this month by investing platform Sharesies also showed confidence was bouncing back.

Its investor confidence index was at its best level since September last year.