SOUNDING OUT THE MARKET EXPERTS
The rapid emergence of a crossborder equity market in recent years, in terms of new issues, secondary offerings and trading, has left many questions unresolved, some of them the subject of much debate. Euromoney asked two professions - Anthony Regan of County Securities and John O'Donnell of Yamaichi International -- for their views on some of these issues and on the market's outlook. Here are some extracts from their replies.
The number of new issues in the Euroequity market has been growing rapidly in recent years. Can this growth be sustained and what are your expectations for 1987?
O'Donnell: It depends on the underlying trend of the equity markets and market makers having the required capital base to be able to smooth out any excess volatility and maintain a good, healthy liquid market. Until fairly recently, we have seen markets continue to rise -- and for such a sustained period that we may now be entering something of a consolidation phase.
The birth of the international market has also had the benefit of a period of considerable deregulation and it is not inconceivable that we could see some national governments implementing legislation which could have certain limiting influences on the continuing rapid development of this market such as various forms of exchange control.