Not a Typo

October 14th, 2008 8:23 am | by John Jansen |

Iceland’s stock market reopened following several days in which trading had been suspended. You might want to check and see if any of your well diversified IRA or 401K had any Icelandic exposure. Stocks fell 76 percent in that country.

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  1. 8 Responses to “Not a Typo”

  2. By jck on Oct 14, 2008 | Reply

    Last I checked it was down 5%.
    http://omxnordicexchange.com/priceinformation/indexes/Microsite_Index/?InstrumentId=ICEIS0000004380
    “The main share index immediately fell 76%, but officials said this was a statistical anomaly caused by trading remaining suspended in financial firms.
    When this factor is pulled out, the index actually rose slightly.”

  3. By John Jansen on Oct 14, 2008 | Reply

    My apology and thank you.

  4. By jck on Oct 14, 2008 | Reply

    please don’t apologize, every news service is carrying this “down 76%” story without bothering to read the explanation from the exchange or checking the live quote available for-free–on-the-web.

  5. By John Jansen on Oct 14, 2008 | Reply

    It is impossible to write as much as I write without making some errors of fact and I always feel bad about that. I also appreciate all of your comments here. Thanks.

  6. By anon on Oct 14, 2008 | Reply

    Leaving the banks out makes no sense at all (if you want meaningful results). The biggest bank (Kaupthing) has a 47% weight in the main index, and the second biggest bank (Landsbanki) has a 24% weight. After those two come Straumur (an investment bank) with an 8% weight, and Glitnir (the third major bank) with a 6% weight. If you throw in the biggest insurance company (Exista with a 4% weight) and the investment company Atorka (1% weight), you have ninety percent of the index still suspended (and likely to next trade at a MUCH lower price).

    I doubt people have picked up any accidental exposure to Iceland. The entire country has 320,000 people (about the same size as Aurora, Colorado).

  7. By Dr.Dan on Oct 14, 2008 | Reply

    anon nailed it here

    Iceland has no economy other than banking

  8. By David Merkel, Alephblog.com on Oct 14, 2008 | Reply

    Let’s see what the result is when the bank shares are allowed to trade again, that is, unless they cancel the common shares.

  9. By Owner Earnings on Oct 14, 2008 | Reply

    The decline is equal to the size of the banks that were taken over whom stock price is now $0.

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