The selected share index of the OMX Nordic Stock Exchange in Iceland dropped by 3.4 percent yesterday and has thus plummeted by 10.6 percent for the past week. The index has not been lower since last March.
“It appears that people are increasingly looking towards the CDS spreads since the liquidity crisis seems to be continuing [in international markets which leads to lower value of stocks in Iceland],” Hermann Már Thórisson from Landsbanki Bank’s research department told Vidskiptabladid.
“Financial companies are such a large part of the selected share index, and the currency rate of securities in most financial companies in the East and the West are falling, which I think explains today’s [yesterday’s] drop,” Thórisson added.
The seven largest financial companies in Iceland, the banks, FL Group, Exista and SPRON, were among the ten companies which value on the OMX Stock Exchange decreased the most yesterday. Icelandair’s stocks lost the most value, falling six percent.