The latest ING survey into investor sentiment has shown Australians are becoming increasingly positive about their financial circumstances in the coming quarter.
The ING Investor Dashboard Sentiment Index for the 2009 September quarter revealed 66 per cent of Australian respondents anticipate an improvement in their returns on investments over the next three months.
The growing level of optimism would appear to have resulted from the better returns generated on the Australian stock market, evidenced by the S&P/ASX 200 index jumping 20 per cent over the September quarter.
This upward movement in markets has been beneficial for the majority of domestic investors, with the study showing 58 per cent of them having experienced an increase in their returns on investment during this time.
“The rising share market has clearly been the biggest driver of sentiment and as a consequence we are seeing more money being allocated back into riskier assets,” ING Investment Management head of distribution and deputy chief executive Martin Donnelly said.
“A high proportion of Australian investors in the survey invest directly in stocks and 64 per cent of these investors have their money invested in the financial sector, which reflects a high degree of confidence in our banking system,” he said.
The real estate market was another catalyst for positive sentiment with 61 per cent of Australian investors predicting a rise in property prices in the December quarter. This is in contrast to only 43 per cent subscribing to this mood for the September quarter.
Overall, Australian investors were categorised as having an optimistic sentiment towards the next quarter. They were considered as having a neutral stance during the previous period.
The survey interviewed 1342 high net worth investors in September 2009 across the Asia Pacific region, including countries such as India, China, Korea, Indonesia and Malaysia.
