Stocks plummet as AIG post biggest loss in 28 years

By MoneyhighStreet Staff. Published on August 7, 2008 This post currently has no comments.

New York Stock Index (NYSE) shares plummeted after AIG fell the most in 28 years of trading following more than $11 billion in writedowns.

The biggest loser was Emergent BioSolutions which fell by 30 per cent, to trade at $9.85 a share.

This was followed by Reddy Ice Holdings whose stock lost 21 per cent of its value, trading at $10.62, and Pmi Group fell 20 per cent to $2.79.

The market plummeted after AIG slid as much as 18 percent in New York Stock Exchange composite trading, its biggest one-day drop since at least July 1980.

Stock of the largest insurer in the US declined $5.04 to $24.05 at 12:15, leaving the shares down almost 60 per cent this year.

AIG''s quarterly loss was driven by $5.56 billion in pre-tax writedowns tied to credit-default swaps.

Meanwhile, the NASDAQ turned positive after big-cap technology shares like Intel gained five per cent.