ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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IFC-Confident Air

October 25, 1986 vide concrete proof of the malpractices detrimental to the investors' interests the government is endeavouring to promote. Inquiries with some of the knowledgeable stockbrokers indicate that the evasion of margins is quite common and that speculative activity in some half a dozen speculative scrips has assumed unhealthy proportions. The view is widely shared that the fall in the regional equity price index reflects largely the sharp decline in a few highly speculative scrips due to special considerations. Corporate reports and the general news background are considered to be conducive to a congenial business environment. Talking to a cross-section of merchant bankers, stockbrokers and investors one gets the unmistakable impression that while certain industries are, no doubt, facing some slackness in demand the overall outlook for equities is quite reassuring. The optimistic assessment is based mainly on the view that the supply of investible funds far exceeds the supply of good growth shares and that institutional investors are flush with funds. Considering the huge resources the corporate sector is required to raise from the capital market, the government can be confidently relied upon to continue to pursue vigorously measures aimed at stimulating the climate for investment. The fall in equity prices during October has no important trend implications.

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