Z, looking for bombed out countries? Venezuela is worth a look. But the US is easier to understand, I think.
For personal use only (this statement copyrighted by Larry Kuznets, with due credit to Lawrence Kam)
biz.yahoo.com
>>>>>>>>>>>>>>>>>>>>>>>>>>
Thursday August 27, 4:21 pm Eastern Time
Caracas stocks, thumped by Russia,
end off 9.9 pct
CARACAS, Aug 27 (Reuters) - Venezuelan share prices
plummeted to a 29-month low Thursday, shaken by a lethal mix of
domestic economic woes and global market uncertainty sparked by Russia's financial and political
turmoil, traders said.
According to preliminary figures, the 15-share (^IBC - news) index dropped 9.9 percent to
2,905.90 -- a level not seen since the first week of March 1996.
''If it wasn't for Russia, the bolsa would still be falling, although not quite so much,'' Cavelba broker
Rafael Alcantara said. Turnover was a moderate 40 million shares worth 1.1 billion bolivars ($1.9
million).
Investors fear Venezuela will be forced to devalue its currency to cover a widening fiscal deficit
caused by the stubborn slump in world oil prices. But Planning Minister Teodoro Petkoff reiterated
Thursday that the government had no plans to devalue.
''How on earth can a country which has a balanced current account and more than $15 billion in
foreign reserves be thinking about a devaluation?'' he said in a radio interview.
Venezuela today reported a slimmer current account surplus for the first half of 1998.
The central bank currently has just under $14 billion in foreign reserves, but Petkoff also included
$1.4 billion in U.S. treasuries that were freed as collateral from last year's $4.4 billion Brady bond
swap.
Despite the stock market's fall, traders reported some foreign buying of bargain-basement shares that
have fallen 70 percent this year. But ''their bids had no depth,'' Econoinvest broker Emilio Antelo
said.
Among leading stocks, bolsa bellwether Electricidad de Caracas (EDC.CR) dropped 6.5 percent to
end at 144.00 bolivars while national phone company CANTV (TDVd.CR) (VNT - news) fell 10.2
percent to close at 970.00 bolivars.
More Quotes
and News:
Compania Anonima Nacional Telefonos de Venezuela (NYSE:VNT - news)
IBC INDEX (Caracas Stock Exchange) (^IBC - news)
Related News Categories: international, US Market News
Copyright c 1998 Reuters Limited.
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