Reykjavik stocks plunge 76% on re-opening

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2008/10/14

Iceland's stock exchange has plummeted by an astonishing 76 per cent during the first session of trading after a three-day suspension.

Market officials insist the figure has been heavily distorted by the absence of trading in finance companies.

The government has had to nationalise Iceland's three main banks, as the country teeters on the brink of bankruptcy.

Elsewhere in Europe, stocks have continued to bounce back.

The main indexes in London, Paris and Frankfurt are all up by about five per cent in early trading.

http://www.abc.net.au/news/stories/2008/10/14/2391227.htm

To know : Iceland count 'only' 300 000 inhabitants.
Uk had freezed some Iceland assets (those of the Iceland biggest bank) using anti terror law passed after 0911 and other countrys do not seem helping.
http://www.bloomberg.com/apps/news?pid=20601085&sid=a9R6kEktPff0&refer=europe

 

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Humm, the title is kind of disinfo.

However, Reykjavik stock exchange officials said the 76.13 per cent decline last night was distorted by the absence of trading in finance companies.

Excluding Iceland's comatose financial stocks, which were suspended more than a week ago and had not resumed trading, the stock market index was only 0.57per cent lower, the stock exchange said.

"We have stripped the three main banks (which were all nationalised last week) from the index. Earlier, they accounted for75 per cent of the index," exchange spokeswoman Kristin Johannsdottir said.

"When not included, the index is mechanically down to 25 per cent of its previous value."

http://www.theaustralian.news.com.au/story/0,25197,24499439-2703,00.html