so with ease but Island analysts are not attaching major significance to the occurrence.

Trading at a two year low, the Bermuda Stock Exchange Index (BSE) on Wednesday closed at 983.14, down 20.93 points from a day earlier.

It dropped again Thursday, 3.03 points.

Prior to Wednesday the BSE last traded below 1,000 on May 20, 1993. "In major markets there are psychological barriers, like 4000 for the Dow, I do not know if we can say if there are such things for the Bermuda market,'' said Ms Anne Kast, president of Kast Investment Management Ltd.

As the exchange matures it will become more significant but she did recognise the two-year low as a big decline.

"It is a seller's market and in a seller's market the most liquid issues tend to sell first. Money exits through the path of least resistance which tends to be the banks because they are the most liquid.'' Bank share prices could drop a little more but they have experienced a strong run for several years, she said.

"A correction is healthy.'' The Bank of Bermuda traded yesterday at $17.125 compared to $20 at the end of 1994 while Bank of Butterfield traded unchanged yesterday at $10.50 compared to $12.625 at the end of last year. Bermuda Commercial Bank traded unchanged yesterday at $10 compared to $10.50 at the end of 1994.

On the positive side, it creates an excellent buying opportunity, said Ms Kast.

Mr. Maxwell Roberts, vice president of First Bermuda Securities, said the smart money is not selling bank stock.

Much of the volume is linked to estate settlements, he said.

No concerns as stock market falls "We are certainly adding to our clients portfolios'', by buying Bank of Butterfield and Bank of Bermuda stock, he said.

These two stocks are the most heavily weighted, 40 and 25 percent respectively, and most likely to have the greatest impact on the index.

"People are not using independence as a reason to sell but they are using independence as a reason not to buy.'' Mr. Pires, chairman of Bermuda Investment Advisory Services said the bank's share prices do not reflect the "real value of the company''.

"This is a short term phenomena, the value is still there.'' Mr. Pires had indicated the independence debate injected some uncertainty into the market resulting in lower trading prices.

"I'm hoping it is not significant but the exchange went through the 1,000 mark pretty easily,'' said Mr. Pires.

Bermuda Container Line shares almost doubled their value yesterday -- but that was the only bright spot on the Bermuda Stock Exchange as most issues closed down in moderate trading.

BCL, which is not a constituent of the BSE index, jumped $2.125 to close at $4.625 on volume of 500 shares yesterday.

It was the only issue to trade up while three closed down and four traded unchanged.

Bank of Bermuda closed down 12.5 cents to $17.125 -- a new low for the year -- on volume of 611, while Bermuda Press (Holdings) dropped 12.5 cents to close at $8 on volume of 2,000.

Hemisphere Group preferred dropped 25 cents to close at $6.25 on volume of 400. Issues trading unchanged were; Bank of Butterfield, $10.50, 6,000, Bermuda Commercial Bank, $10, 1,500, Telco, $35.50, 2,488, and Belco, $19.50, 1,567.

The exchange closed at 980.11, down 3.03 points or .31 percent.

Share volume was 25,066 with a share value of $295,406.

Chart -- Page 16