World Record? Icelandic Stocks Drop 77% as Trading Resumes After 3-Day HaltIcelandic Stocks Drop 77% as Trading Resumes After 3-Day Halt By Jakob Lindstroem Oct. 14 (Bloomberg) -- Iceland's benchmark stock index plunged 77 percent, the biggest decline on record, as trading resumed after a three-day suspension and the nationalization of the country's largest banks. Kaupthing Bank hf, Glitnir Bank hf and Landsbanki Islands hf collapsed this month with debts equivalent to as much as 12 times the size of Iceland's economy. The three banks accounted for about 76 percent of the ICEX 15 Index's value prior to the nationalization. The OMX Iceland 15 Index fell 2,324.45 to 680.17 as of 2:07 p.m. local time. Four of the 13 other stocks in the index didn't trade, while the six that did accounted for about 8.5 percent of the index's weighting before today. Trading was halted since Oct. 9 after the gauge lost 30 percent in nine days as the country's financial system collapsed. Iceland started talks in Moscow today to (more...)