It is surprising to watch the local investors selling quality shares at lower prices at loss while foreign investors have confidence in our market. Within six months they have accumulated shares worth 24 billion.
High interest rates will not make the investors to exit from the market as those who invest in shares hope to get more than 15% or 20% a year.
The untimely policy changes upset the investors. When the market is low the brokers should be allowed to give credit as they please.
It is good for the investors. At the moment credit can be extended up to one year, so that investors can benefit from the company performances. The period of providing credit facilities should be gradually reduced when the market goes up. So that the small investors will be protected and they can recover the losses they have incurred so far.