October - A Game of Two Halves

October on the Amsterdam Exchanges NV was very much a game of two halves. The first weeks saw a continuation of September's record-breaking run, but in the second half a correction followed. On balance the average share price level at end-October was little changed from that at end-September, although this could not be said for many individual stocks, due in part to interim earnings reports.

Although October traditionally has a bad reputation among investors as the month of the crash the Wall Street crash of 1929 as well as the mini-crashes of 1987 and 1989 all occurred in October the month got off to a flying start on most stock markets. This chiefly reflected investors' favourable expectations of ongoing moderate economic growth and continued low inflation. When, towards the end of the month, the market interpreted comments by Bundesbank officials as indicating that further rate cuts had become less likely, investors started to take profits and share price gains were for the