The Federal election appears to have failed to dampen investor interest in Australian shares, according to the latest Global Proxy-Melbourne Institute Shareholder Confidence Index.
The index, released this week, revealed that investor confidence in Australian shares jumped by 4.9 per cent after slumping in May.
Commenting on the index, Melbourne Institute of Applied Economic and Social Research professor Guay Lim said that, on balance, shareholders were more confident about the market right now than they were about prospects for its future performance.
He said that while it might have been expected that confidence would fall because of the uncertainty generated by the election, this did not seem to be the case.
Lim said it was possible that the renewed confidence had been generated by the pause in interest rates.
The survey underlying the index was conducted during the first week of August.
