Invest
Investors remain confident in Australian businesses
Despite volatile sharemarkets, investors remain confident in Australian capital markets and businesses, new research has revealed.
Investors remain confident in Australian businesses
Despite volatile sharemarkets, investors remain confident in Australian capital markets and businesses, new research has revealed.
A consumer confidence survey released by Chartered Accountants has shown that 82 per cent of Australian investors are still confident in publicly listed companies, while 79 per cent are confident in capital markets.
The survey revealed the confidence is based on the belief that Australia’s economy will recover quickly from the health crisis.
Investors are also confident in the ASX’s history of bouncing to a new high and a high level of confidence in government support.
In the aftermath of the interim report of the parliamentary audit inquiry released earlier this year, independent auditors who audit publicly listed companies still remain top of the confidence and effectiveness ratings among players with roles helping to advance investor protection.
The faith in Australian markets is in contrast to investing internationally, with over one-third saying they have very little or no confidence, down 12 per cent from last year.
“This level of investor confidence is more than surprising in the face of what the OECD has described as the most severe economic recession in nearly a century,” said Amir Ghandar, CA ANZ’s reporting and assurance leader.
“A sense of optimism has clearly been growing as the nation weathered the pandemic, but uncertainty remains as to the speed and depth of an economic recovery.”
However, Mr Ghandar highlighted that investors were not ignoring risks in the market.
More than half (53 per cent) are expecting “a great deal” or “quite a bit” of additional disclosure in financial statements in the COVID-19 environment, focusing on the impact on operations and results now and in the future.
“Investors are also interested in the impact on liquidity and business outlook, changes in demand for products and services, and impact on supply chain and distribution.
“A reality check may be due later in 2020, with almost half of investors saying companies and auditors flagging ‘material uncertainty’ will have a possibly significant impact on their confidence,” Mr Ghandar said.
Mr Ghandar believes investors will focus on financial reports more than ever this year, giving them a new prominence.
“As we kick off company reporting season, these results show us that while shareholders will still be looking at explanations from chairs and CEOs, they will also be probing whether what they are hearing aligns with the financials in terms of going concern uncertainties, asset carrying values and other assumptions,” Mr Ghandar noted.
About the author
About the author
Stock market
Where to find dividends in a low-rate environment
Australian investors who are income-focused are still able to find strong dividend-paying stocks, but the market is changing, an expert has said. ...Read more
Stock market
Did investors overreact to the COVID-19 pandemic?
The economic downturn has not hit many sectors of the economy as hard as first predicted, with the reporting season revealing that many sectors will recover quickly, an investment fund has revealed. ...Read more
Stock market
Market volatility not a worry for Millennial investors
In spite of COVID-19-related volatility, Australian investors aged between 24 and 39 remain bullish about the current sharemarket. ...Read more
Stock market
Why investors will miss their mark for the next 5 years
Australian investors are urged to rethink their investment targets, with the COVID-19 recovery likely to have an impact on returns, new research has found. ...Read more
Stock market
Standing strong in a crisis, ethical investments are here to stay
Ethical investments are more than just a short-term fad, an investment manager has advised. ...Read more
Stock market
Sovereign wealth fund goes negative for the first time since the GFC
The Future Fund has posted a rare negative return for 2020 and warned that a “challenging and volatile” economic climate could hurt previously strong gains moving forward. ...Read more
Stock market
Don’t worry about dividends: Stocks still going strong
Dividends are still up for grabs for active investors willing to wade through the major headlines and an abundance of market negativity, an investment expert has flagged. ...Read more
Stock market
Why Afterpay and Zip investors should buy Tuesday and sell Friday
Investors in speculative stocks, including Afterpay and Zip, can theoretically purchase more shares at a reduced price on a Tuesday, before seeing the value increase on a Friday, new research has reve...Read more
Stock market
Where to find dividends in a low-rate environment
Australian investors who are income-focused are still able to find strong dividend-paying stocks, but the market is changing, an expert has said. ...Read more
Stock market
Did investors overreact to the COVID-19 pandemic?
The economic downturn has not hit many sectors of the economy as hard as first predicted, with the reporting season revealing that many sectors will recover quickly, an investment fund has revealed. ...Read more
Stock market
Market volatility not a worry for Millennial investors
In spite of COVID-19-related volatility, Australian investors aged between 24 and 39 remain bullish about the current sharemarket. ...Read more
Stock market
Why investors will miss their mark for the next 5 years
Australian investors are urged to rethink their investment targets, with the COVID-19 recovery likely to have an impact on returns, new research has found. ...Read more
Stock market
Standing strong in a crisis, ethical investments are here to stay
Ethical investments are more than just a short-term fad, an investment manager has advised. ...Read more
Stock market
Sovereign wealth fund goes negative for the first time since the GFC
The Future Fund has posted a rare negative return for 2020 and warned that a “challenging and volatile” economic climate could hurt previously strong gains moving forward. ...Read more
Stock market
Don’t worry about dividends: Stocks still going strong
Dividends are still up for grabs for active investors willing to wade through the major headlines and an abundance of market negativity, an investment expert has flagged. ...Read more
Stock market
Why Afterpay and Zip investors should buy Tuesday and sell Friday
Investors in speculative stocks, including Afterpay and Zip, can theoretically purchase more shares at a reduced price on a Tuesday, before seeing the value increase on a Friday, new research has reve...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
