Selected Share Index Hits New Low Skip to content

Selected Share Index Hits New Low

By Iceland Review

The selected share index of the OMX Nordic Stock Exchange in Iceland dropped by 2.44 percent yesterday and has not been lower this year since January 5. FL Group and Exista lost the most value down 5.5 percent and 3.8 percent, respectively.

The two Icelandic companies have suffered the most from the financial crisis which began in markets around the world early during the third quarter of 2007. The market value of FL Group has decreased by ISK 91 billion (USD 1.5 billion, EUR 1.0 billion) since July 1, 2007, and Exista’s value is down by ISK 118 billion (USD 1.9 billion, EUR 1.3 billion), Morgunbladid reports.

Other companies have also suffered. The market value of Kaupthing Bank dropped by nearly ISK 104 billion (USD 1.7 billion, EUR 1.1 billion) for that period, Straumur by almost ISK 21 billion (USD 335 million, EUR 225 million) and Spron, which was listed on the OMX a little over a month ago, by ISK 30 billion (USD 478 million, EUR 322 million).

Gylfi Magnússon, an assistant professor in the Faculty of Economics and Business at the University of Iceland, said the plummeting share prices on Iceland’s stock market is a natural part of the cycle. “The market has heated up rapidly for the past few years, so even though there may be one year where the growth is slow or even negative, it’s just par for the course in these markets.”

“The market could still drop considerably before starting to climb again, but despite that investors have made solid profits in the long run,” Magnússon said.

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