Iceland stock index slumps as trade resumes
STOCKHOLM (Reuters) - Trading on the Icelandic stock exchange resumed on Tuesday with the blue chip index falling sharply.
Trading in six financial stocks -- Kaupthing, Landsbanki, Glitnir, Straumur-Burdaras, Reykjavik Savings Bank (SPRON) and Exista -- remained suspended.
The index slumped 77 percent from the last time it traded, on Wednesday.
Much of the decline is due to the way the bourse has treated three banks which had been taken over by the state. Market operator OMX said it had revised its index values and the share of the three banks in it had been set at zero.
"The reason is that there is no trading currently to provide a true market price for these stocks," the exchange said in a statement.
Based on the values of shares that are currently trading, the index was down 5 percent, OMX data on its Web site showed.
Iceland last week took control of the operations of Kaupthing, Landsbanki and Glitnir.
The entire stock market had been suspended since Thursday with the last official trade coming on Wednesday.
(Editing by Paul Bolding)
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