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Shares slip to a 33-month low

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CIOL Bureau
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BANGALORE: Indian shares slumped to a 33-month low on Wednesday in the wake

of terror attacks in the United States, leaving investors shocked and

heightening worries the global economy could slip into a recession, brokers

said.

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But a day after suicide attacks demolished New York's signature World Trade

Center and smashed a hole through the Pentagon in Washington, analysts advised

keeping calm, recommending investing from a medium-to long-term perspective.

Technology stocks were the hardest hit as investors feared the attacks in the

United States would further dent demand for Indian software companies' services

in their largest market. Sentiment on tech shares was also downbeat as US

markets, which are closed on Wednesday, could reopen on a plaintive note later

this week.

But investors remained edgy, with the benchmark 30-share Bombay Stock

Exchange index finishing at 3,032.71, down 3.74 per cent on the day, and down

23.65 per cent from the start of the year. The index recovered from its

intra-day low of 2,954.35 points - down 6.22 per cent at that point - as

investors, led by domestic funds, hunted for bargains.

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Both the intra-day and closing levels were the lowest since December 24,

1998, despite the market regulator announcing temporary price filters on the

index and 53 leading shares until further notice.

UK: Shares rebound in aftermath



London's leading shares fought their way higher in volatile and at times
emotional trade on Wednesday as investors absorbed the shock of Tuesday's terror

attacks in the United States. The blue-chip FTSE 100 index seesawed in a

230-point range and surged in late trade to end up 136.1 points or 2.87 per cent

at 4,882.1, battling back from three-year lows after a near 10 per cent slide

from Tuesday's high before the attacks.

China: HK stocks slump over 7%



Hong Kong stocks plunged on Wednesday to their lowest levels since early 1999
after the attacks. The Hang Seng Index was down 7.28 per cent at 9,659.15 28

minutes after the start of trading, after diving over 10 per cent shortly after

the open. Tokyo's key benchmark index fell five per cent while Singapore stocks

dropped 6.5 per cent. Hong Kong traders were buying the local currency and

selling the US dollar in early Wednesday trade. Dealers said the Hong Kong

dollar was bid at 7.7988 per US dollar, firmer than Tuesday's closing levels of

7.7999.

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Japan: Steep fall in Nikkei



The Nikkei share average ended down 6.63 per cent at 9,610.10, its lowest close
since December 1983, on the back of the devastating terror attacks in the United

States that sent shock waves through global markets. It was the Nikkei's

eighth-largest percentage decline ever. The latest plunge in Tokyo stock prices

on Wednesday is likely to prompt more firms to postpone or cancel plans to debut

on Japan's already lackluster market for initial public offerings (IPOs),

analysts said.

Netherlands: Dutch Aex down



The AEX index fell in the morning to its lowest level since November 1998 at
438.88 points, then flipped up to a intra-day peak of 463.52 points, up three

per cent, before crumbling again. At 1245 GMT the AEX was trading down 2.03 per

cent at 440.81. The Dutch blue chip index whip-sawed on Wednesday lurching back

to early lows in the afternoon on disappointment that the European Central bank

was in no hurry to cut interest rates. A swathe of stocks with heavy exposure to

the United States extended losses while a few shares such as KPN Telecom and

brewer Heineken bucked the trend. Analysts at ING Barings said in a research

note that the timing of the attacks could not have been worse since fears of a

global recession were already rife.

Sweden: Nordic shares reverse losses



Nordic shares reversed early losses on Wednesday when shares that had been
battered after Tuesday's terrorist attacks in the US rebound tentatively, led by

security-related firms that could see extra business. Telecom equipment

heavyweights Nokia and Ericsson , battered on Tuesday after hijackers crashed

passenger jets into US landmarks and ignited fears for world stability, both

rose into the black.

(With inputs from Reuters)

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