divisions.

This emerged as an analyst with a local investment company highlighted the domination of the Bermuda Stock Exchange activity by Bank of Bermuda share trading in recent weeks.

The observation was made by Mr. Mark J. Melvin FCA, CFA of Bermuda Investment Advisory Services Ltd. during his periodic review, written as a retrospective look at the market so that the company's clients can take a position in future trading options on the local exchange.

The Chartered Financial Analyst also noted about the proposed new mortgage company that is expected to be established. He said: "This creates the largest such entity in Bermuda and the expectation that such a merger could have considerable control over the local market for mortgage funds. The other mortgage companies will inevitably have to follow the lead of this new entity in setting savings rates, mortgage lending policy and the like.'' Mr. Melvin goes on to remark that the single biggest influence on the stock is the retirement of the bank's president, Mr. Donald Lines, and the inevitable changes that may occur in the corporate philosophy and management.

An efficient market, he said, would have taken this into account, either positively or negatively, before now.

He continues that the changing of an era often leads to market practitioners adopting a" wait and see'' view of a stock at such times, and only a positive view, if the outgoing management has been viewed as ineffective or incompetent.

"Clearly,'' he concludes, "this has not been the case.'' The bank's stock is the most heavily weighted on the exchange.

It is the exchange's largest company. But the share price has risen by $4 over this recent period, representing a 20 percent increase, overshadowing the other index components, which when combined even with the bank's sizable increases, rose only 10 percent.

Mr. Melvin revealed that major trades of Bank of Bermuda shares have taken place, "...the largest in excess of 200,000 shares traded last week, pushing the shares nearer their all time high of $25, reached last July. At present, it stands at $23.'' Interestingly enough, while offers for sale of the stock have been spread over all three members of the exchange, that is the three banks, it was the bids placed through the Bank of Bermuda, itself, that really drove the price of stock up.