/ 17 August 1998

Rouble devaluation impacts markets negatively

OWN CORRESPONDENT, Johannesburg | Monday 7.00PM.

LOCAL shares fell by more than 2% across the board on Monday following Russia’s de facto devaluation of the rouble by more than a third.

Dealers said sellers overwhelmed buyers on the JSE as investors prepared themselves for renewed volatility on international markets.

The All Share index fell by 114,2 to end trade on 6176,8 while the Industrial index fell by 131,9 to close on 7220,3. The Financial and All Gold indices ended on 10,657 and 874,5 down 208,3 and 19,3 respectively.

Bonds were also adversely affected by the rouble plunge, but dealers said the impact on the market was mild since the Russian move had been largely expected, though the amount of the de facto devaluation was larger than anticipated.

The benchmark R150 bond ended trade on 16,725% after closing Friday on 16,670%. The long-term R153 closed on 16,500% compared to its previous close of 16,450%.

The Russian devaluation of the rouble impacted negatively on the Rand for a short while on Monday, but the currency was steady by the close after strong exporter demand brought it back to its opening levels in thin, patchy trade.

The Rand closed on 6,2950 against the Dollar, compared to Friday’s close of 6,3300. Against the Sterling, the Rand closed on 10,1802 after closing Friday on 10,210.

Gold closed at USD/oz 284,20, ten cents down from Friday’s close of 284.30.