Spike in share sales triggers market fears

A FLOOD of share sales in the US coupled with the busiest week for initial public offerings (IPOs) in almost two years could mean that the recent market rally is nearing the end.<br /><br />September is on pace to be the busiest month for secondary issuance since May, which some portfolio managers see as a sign that companies are taking advantage of the market while they still can.<br /><br />And the week starting 21 September will see six firms launch IPOs &ndash; the biggest week for new listings since December 2007.<br /><br />Matt McCormick, portfolio manager at Bahl &amp; Gaynor Investment Counsel, said: &ldquo;Companies are feeling there are dark clouds on the horizon, so why not issue now?&rdquo;<br /><br />&nbsp;GFT Global market strategist David Morrison also warned of a sharp correction on global markets<br /><br />&ldquo;You can&rsquo;t go up in a straight line forever, so a pullback on the FTSE seems inevitable,&rdquo; he said.<br /><br />He added: &ldquo;The question now is, is this going to be a consolidation and a healthy pullback or is it going to be deeper.&rdquo;<br /><br />UK blue-chip share index the FTSE 100 closed above the landmark 5,000-point mark on Wednesday, after slumping to just 3,529 in March in the depths of the recession.<br /><br />But stellar rises on global markets have sparked fears in experts like famed investor Warren Buffet that a correction is now overdue.<br /><br />The bonanza week of US IPOs will include the listing of Artio Global Investors, the US asset management arm being sold by Swiss bank Julius Baer.<br /><br />The other companies are: lithium car battery maker A123 Systems Inc; Apollo Commercial Real Estate and Colony Financial, both real estate investment trusts; online health supplement retailer, and American hospital operator Select Medical.