heavy profit-taking took over the market.

The Exchange Index dropped 19.85 points to close at 1,100.90, losing 1.3 percent of its value in heavy trading.

The drop in the index was the second major fall in three days. It has lost 32.34 points since the start of trading on Friday.

One analyst said political uncertainty over the general election and nervousness about relaxation of foreign exchange controls had exacerbated a traditional loss in value during the winter months.

Leading the losers was Telco, which plunged $5 on volume of 1689 shares to close at $30. The decline was probably due to the negative publicity surrounding this month's hearings into alternate long distance phone services, the analyst said.

Masters, trading for the first time since December 14 last year, plummeted $1.50 to close at $7 on volume of $1000.

Belco, which was hit by an Island-wide blackout on Saturday, dropped $1 to $19 on volume of 685. And one day after news it had won the Horseshoe Beach concession, Long Botham Boats dropped 25 cents to $7.75 on volume of 1000.

BF&M 9% preference shares fell 25 cents to $9.75 on volume of 344, and Bank of Butterfield shares fell 12.5 cents to $331 on volume of 580.

Only BF&M ordinary shares increased in value as they went up 25 cents to $7 on volume of 100.