NZ investor confidence dips in Q4 - ASB Bank survey

WELLINGTON, Feb 5 (Reuters) - New Zealand investor confidence slipped to its lowest level in a more than a year in the fourth quarter, dented by turmoil in global credit markets, a survey showed on Tuesday.

A net 19 percent of respondents to the ASB Bank investor confidence survey believed their investment returns would improve in the coming year, down 3 percentage points from the previous quarter. It was the second consecutive quarterly decline and matched the confidence level in the third quarter of 2006.

"Over the second half of 2007, it became clear the problems in the U.S. housing market were spreading, triggering concerns about global credit markets and the health of the overall global economy," said Jonathan Beale, ASB's head of investments services, in a statement.

The decline in sentiment was not as sharp as in the third quarter, which had a 7 percentage point fall, and on average confidence in various asset classes held up.

Residential property remained the most favoured asset, although it had sharp fluctuations during the quarter, with a net average 18 percent of respondents expecting it to provide the best return, compared with 26 percent in the previous survey.

"It may be that bricks and mortar are seen as safe, despite the fact that the local housing market is showing some signs of slowing and interest rates are higher," Beale said.

The Reserve Bank of New Zealand has raised the official cash rate four times last year to 8.25 percent on concerns over strong domestic spending, particularly in the housing market.

Confidence in managed investment funds was a shade firmer at 15 percent, while bank deposits were steady at 12 percent, as were shares at 9 percent. (Reporting by Gyles Beckford)