INVESTORS' confidence dropped this month as people remained concerned that the downturn in stocks and shares was not yet over, research showed last night.

JPMorgan Fleming said its investor confidence index fell to 75 during the month, from 86 in June, although it remained well above the 45 it dropped to in March when war with Iraq was imminent.

But the study showed people were more confident about the stock market's prospects, with 36 per cent expecting it to be higher in six months' time, compared with 26 per cent who thought there would be further falls, and 38 per cent who believed it would remain flat.

MarketMinder questioned 500 private investors between July 11 and 17.