Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Millennium Crash -- Ignore unavailable to you. Want to Upgrade?

To: Arik T.G. who wrote (4158)	5/12/1999 8:57:00 AM
From: Cynic 2005	Respond to of 5676

Don't need to go as far back as 1929 to compare events. Try 1998! -g- ---------------------------------- May 12, 1999 -------------------------------------------------------------------------------- Firing of Primakov Sinks Stocks, And Trading Halt Is Declared An INTERACTIVE JOURNAL News Roundup Stock trading was halted in Moscow for the first time since last summer's ruble-devaluation crisis after prices plunged Wednesday in reaction to the ouster of Russian Prime Minister Yevgeny Primakov. The Moscow Stock Exchange called a trading suspension after the Russian Trading System index moved to a loss of 16.16, or 17%, to 80.95 -- crossing the threshold that triggers an automatic trading halt. At that mark, the market was down 9.3% from its opening level of the day. Yeltsin Dismisses Primakov in Fight With Duma The halt, which is open-ended, was the second of the day. It quickly followed a half-hour trading suspension that was called when the market moved to a loss of 15% from Tuesday's close. Russia's Federal Securities Commission will rule on when to resume trading. "Everyone is running for cover. Bids are dropping dramatically," said James Fenkner, an equity strategist at Troika Dialog brokerage in Moscow. Russian oil company shares, which have soared in recent weeks, took the brunt of the sell-off early in the session. President Boris Yeltsin sparked the turmoil -- the worst in the Russian market since August 1998, when the government defaulted on most of its Treasury debt and devalued the ruble -- by firing Mr. Primakov, who the Kremlin sought to blame for the country's continued economic woes. But the real reason for Mr. Primakov's ouster appeared to be the start of impeachment hearings against Mr. Yeltsin, set for Thursday. The dismissal stepped up the fight Mr. Yeltsin and his opponents in the Communist-dominated Duma, where Mr. Primakov has strong support. The value of the ruble and of Russia's foreign debt dropped along with Russian stocks. The spot ruble was quoted at 25 rubles to the dollar, compared with 24.29 rubles to the dollar late on Tuesday. Bids for Russia's dollar-denominated Eurobond, maturing in 2007, fell eight cents to 35 cents for each $1 face amount of bonds. Other world stock markets felt a limited impact from the events in Russia. Stocks posted narrow losses across much of Europe. In Germany, whose market is often sensitive to troubles in Russian, the Xetra DAX index was quoted down 55.80, or 1.1%, to 5241.70.