Planners, media tie in stock tip stakes

Australians own more shares directly than anyone else in the world but are as likely to get stock tips from a newspaper as from a financial planner, according to a study by the Australian Stock Exchange (ASX).

The 2004 ASX Share Ownership Study, which documented the share ownership habits of 2402 randomly selected Aussies, showed that 44 per cent of the population hold shares directly up from 39 per cent in 2003. The ASX said this was the highest reported level of retail share ownership in the world.

The survey found that 17 per cent of respondents were most influenced by a newspaper when they made investment decisions. Financial planners also scored 17 per cent, much higher than accountants, who influenced just 6 per cent of respondents.

Growth in share ownership was stronger from groups who might be least expected to directly hold shares - those earning less than $50,000 per year and those with a trade certificate or year 12 level of education as their highest level. The value of the average portfolio was fount to be $41, 400, up one per cent from last year.

Not surprisingly, the only asset class found by the ASX to be more popular than Australian equities was investment property, which was estimated to represent 28 per cent of household wealth, while Aussie equities accounted for 19 per cent.

“The ASX is pleased to observe the continued strength of participation in the sharemarket,” said ASX deputy chief executive officer, Colin Scully.

“ This rise in the number of investors suggests a widening of the shareholder base, and their comments in our qualitative study point towards a growing level of sophistication. However, we should note that while retail investors are important, they account for less than a quarter of share value traded on the ASX.”

Retail investors account for the majority of trades on the ASX but only about a quarter of the total value traded. Institutional investors and corporations account for the rest.