News Round Up
Monday, February 19th 2001, 6:54AM
The net worth of New Zealand households fell for the fourth consecutive quarter in December according to the latest WestpacTrust Household savings indicators.
They say that household net worth fell by $1.5 billion or 0.7% and is now $5 billion (2.4%) lower than a year ago.
While household net worth is down, financial net worth, that is the number less housing assets and liabilities, is up nearly 0.7%.
A declining net worth is being attributed to a growth in liabilities with households borrowing an additional $1.1 billion more in the December quarter than the previous one.
NZ Institute of Economic Research director Alex Sundakov says because house prices are rising more slowly than in the mid-1990s, housing is becoming less attractive for investments.
More fallout possible
The New Zealand Society of Investment Professionals (NZSIP) says the fall out from Lion Nathan's raid on Montana is likely to have detrimental effects on the country's savings rate.
It says local minority investors will continue to avoid investing in the New Zealand market due to a lack of confidence or trust in the rules that govern market participants and the behaviour of those participants.
NZSIP president Louis Boulanger says that with the possibility of similar corporate activity before a new takeover code comes into force on July 1 is likely to an even greater loss of investor confidence.
"The potential damage to New Zealand's reputation as an investment destination from continued inaction on the legislation front could be significant."
Boulanger says a new NZ code should be based on the one used in the US.
If you invest in Australian shares you will need a copy of the Australian Investment Handbook. This book is available in the bookstore for $25.95.
The book is a sister copy to the popular New Zealand Investment Year Book published by Datex. The book profiles major Australian listed companies and stock exchange information.
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