08/26/1998 11:18:58 Deutsche Bank<DBKG.F>falls 6 pct on Russia worries
FRANKFURT, Aug 26 (Reuters) - Shares in Germany's biggest
commercial bank Deutsche Bank AG <DBKG.F> fell more than six
percent to almost a six-month low as fresh concern about
Russia's financial woes hit after Moscow set terms for
restructuring its debt.
By 1037 GMT Deutsche shares were 5.41 percent lower at
122.50 marks in Xetra DAX computer trade after falling to 121.40
marks, nearing its lowest level since March 6 of 120.25 marks.
Dealers said Deutsche Bank was falling more strongly than
other German banking shares because of its significant
liquidity, its perceived high exposure to Russia and the
continued anxiety about the Asian financial crisis.
They also said unconfirmed market rumours of a rating
downgrade were weighing on the stock.
"It's being said the rating will be lowered. I think this
makes sense. They are heavily involved in eastern countries,"
one dealer said.
Deutsche has not stated its Russian exposure but analysts
estimate it amounts to one billion marks ($550 million), of
which 50 percent is believed to be covered by loan loss
"Deutsche is the most liquid of all the bank stocks and
there are these new worries about Russia now. Deustche Bank is
the biggest creditor," another dealer said.
"Deutsche rallied yesterday so it had quite a few gains to
give up," another dealer said.
Deutsche hit an intraday high of 131.30 marks on Tuesday
before closing at 129.50 marks compared to 127.50 marks on
Monday after news Russian President Boris Yeltsin had reinstated
Viktor Chernomyrdin as prime minister offered the market some
German banks, the biggest creditors to Russia, have been
hammered by its financial crisis since last Monday when the
government effectively devalued the rouble and imposed a 90-day
((Melanie Cheary, Frankfurt Newsroom +49 69 756525,