The Royal Gazette/ Bermuda Stock Exchange (BSX) index plunged 2.6 percent yesterday to close below 3,000 for the time time in more than five years yesterday.

Butterfield Bank, the largest domestic company by market capitalisation, fell 4.5 percent, on unusually high volume of 131,750 shares to hit a new 52-week low of $8.50.

After the effects of stock splits are taken into account, the bank's share value hit its lowest level since late 2003.

The bank's share price fell 37 percent last year and this year to date it has lost 18.6 percent of its value.

Butterfield, which has announced tens of millions of dollars in write-downs over the past six months for soured investments tied to US mortgages and for supporting its Money Market Fund, is expected to announce its fourth-quarter results within days.

Insurer Argus Group Holdings Ltd. suffered an even greater fall yesterday, dipping 5.9 percent to close on $8, as 1,000 shares changed hands. Argus shares are now at their lowest point in nearly five years.

Argus, which owns a stake of approximately eight percent in Butterfield Bank, has fallen nearly 18 percent this year.

Power company Belco Holdings Ltd. was the only issue to gain, rising 50 cents, or 3.1 percent, to close the day on $16.50, as 2,800 shares traded.

The BSX fell 79.69 points to close at 2,979.77. Volume was 135,550 shares and turnover was $1.17 million.