Correction to be expected in such a strong market, says industry
TORONTO, Aug. 17 /CNW/ - The Investment Industry Association of Canada
(IIAC) today commented on the market decline of the past month. Ian Russell,
IIAC's President and CEO said, "Although the markets in the short-term have
been more turbulent than usual, this volatility reflects the normal
functioning of healthy, expanding capital markets."
Mr. Russell notes that "Since the beginning of 2003 the average value of
Canadian stocks, as reflected in the S&P/TSX index, has more than doubled.
Since the end of 2005 they have increased by 30 percent. The Dow has made
similar gains. Those numbers include the corrections of the past month. In
short, we're in a period of remarkably strong growth. And no investor should
feel unduly concerned about corrections in such a strong market."
"Economists in our member companies," Russell notes, "are consistent in
emphasizing that the fundamentals remain strong. If this correction leads some
investors in the US and Canada to examine more closely their levels of risk,
that too is beneficial."
The Investment Industry Association of Canada has taken steps to ensure
short-term market stability. The Association works closely with the Bank of
Canada. It has kept the Bank of Canada informed of the industry's perspective
on recent market developments. It has also collaborated with the Canadian
Depository for Securities (CDS) on issuing CDS clarification to its
participants on its rules and procedures for the clearing and settlement of
securities. These changes, which have been welcomed by market participants,
facilitate more stable and well-functioning commercial paper markets.
In addition, the Investment Industry Association of Canada is working on
longer term initiatives to make Canadian equity markets more efficient. These
initiatives will improve regulatory procedures across the country, making them
more cost-effective, uniform and transparent.
About the Investment Industry Association of Canada (IIAC)
The IIAC, formerly the industry association arm of the Investment Dealers
Association of Canada (IDA), advances the position of the Canadian investment
industry on regulatory and public policy issues. As the professional
association for the industry, the IIAC has a mandate to promote efficient,
fair and competitive capital markets for Canada while helping its member firms
across the country succeed in the industry.
For further information:
For further information: and interviews please contact Rob Borg-Olivier,
(416) 362-0005 ext.21, Cell: (647) 338-0749