AEX drops dramatically

10th August 2007, Comments 0 comments

10 August 2007, AMSTERDAM (dpa) - The Amsterdam stock exchange AEX responded dramatically to Thursday's losses on Wall Street and at 10 am on Friday, the index had lost 2.50 percent and marked 504.93 points.

10 August 2007

AMSTERDAM (dpa) - The Amsterdam stock exchange AEX responded dramatically to Thursday's losses on Wall Street and at 10 am on Friday, the index had lost 2.50 percent and marked 504.93 points.

The last time the AEX index stood at this level was in February of this year.

The Midkap index dropped 1.5 per cent to 699.48 at 10 am local time.

ABN AMRO lost most, initially dropping 10 percent but later recovering to a 5.95 per cent loss.

According to analysts, the bank's losses resulted from rumours that Britain-based Barclays, one of two parties vying for the takeover of the Dutch bank, wanted to withdraw its bid on the biggest Dutch bank.

The financial sector is suffering following Thursday's news that French bank BNP Paribas froze several investments funds as a result of the crisis on the American credit market.

Other financial companies that suffered in Amsterdam were Belgian-Dutch bank and insurance company Fortis NV (2.5 percent loss) and insurance company AEGON, which marked a 2.13 percent loss by 10 am.

AEGON's losses followed despite the company's statement on Thursday that the insurance company, which has EUR 3.2 billion invested in the US subprime mortgage industry, it was "not affected" by the crisis in the US credit market.

[Copyright dpa 2007]

Subject: Dutch news

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