The Island's three biggest domestic listed companies each saw millions wiped off their market value on Friday, as the Bermuda Stock Exchange Index plunged to its lowest point in nearly a decade.

Both Butterfield Bank and Argus Group Holdings plunged nine percent and Ascendant Group, owner of electricity provider Belco, dipped more than three percent.

The end result was a 4.6 percent fall for The Royal Gazette / BSX Index to 1,919.01 points — the lowest close since November 30, 2000.

The Exchange's domestic board has suffered a dramatic fall from its all-time high of 5,382.06 on July 25, 2007, weighed down by the declining share price of Butterfield.

The bank is by far the most heavily weighted issuer in the BSX Index, with a market capitalisation of $293.46 million — around one third of that of the entire Index.

While many of the world's stock markets plunged dramatically in the wake of the bankruptcy of investment bank Lehman Brothers in September 2008, most have rebounded strongly since March last year. That was not the case with the BSX Index, which fell 39.3 percent in 2009.

Butterfield's falling share price has been the main factor in the BSX's plunge. But another of the big three domestic companies, Argus, which owns a seven-percent stake in the Bank, has also seen its share price lose more than half its value since hitting its high point in March 2008.

Butterfield has endured a difficult two years. After the sub-prime mortgage crisis sparked a property value slump in the US, it had to write down the value of investments backed by US mortgages by close to $200 million.

It spent millions more dollars supporting its Money Market Funds, as the global credit crunch wreaked havoc.

In June last year, it raised $200 million in a preference In June last year, it raised $200 million in a preference share issue that was guaranteed by the Government, capital it was required to raise to satisfy financial regulator the Bermuda Monetary Authority that it had sufficient "cushion" to withstand a severe economic downturn.

While the offering of the preference shares, which give investors an attractive eight percent annual yield, was massively oversubscribed, the bank's common shares have continued to fall.

The bank's fourth-quarter and annual results are likely to be announced at some point during the next two weeks. Through the first three quarters of the year, the bank made a marginal loss, with its earnings hit by low interest rates.