gains for the Bermuda Stock Exchange, with the local index advancing more than 52 percent since last January to close at 2,293.25 points.

The 786-point gain over the year's opening figure of 1,506.54 began after a slight, gradual decline during the first six months of the year. Investors showed most interest in the Banks of Bermuda and Butterfield, whose shares experienced gains with the prospect of listing on foreign exchanges and fuelled two primary bullish periods for the index through July and August and at the beginning of December.

The Bank of Bermuda, which in December received exemption from 60/40 legislation that limits foreign ownership of local companies to 60 percent, saw its market capitalisation more than double from $607.1 million to $1.2407 billion during the year. Due to a one-for-seven share split in August, the increase is not reflected in the share price - which began the year at $30, fell to $24.48, was recalculated and eventually rose to end the year at $45.50, 45 cents short of the stock's all-time high.

The bank's stock price was also helped by an impressive performance during the 2000 fiscal year, with earnings topping $100 million on revenues of $419 million. Investors anticipate further share price gains when the bank finally lists its shares on the NASDAQ early this year.

News that 60/40 exemption also pushed up the Bank of Butterfield's share price, which the bank had tried to increase through share buyback and cancellation programmes. BNTB stocks opened at $17.25 on January 4, the year's first day of trading, and have since risen to $26, even though the bank has not yet received approval to list its shares overseas. Like its bigger rival, BNTB also posted record profits for the year, announcing in August that earnings exceeded $54 million.

In addition to the shares of the two major banks, the exchange incorporates 29 additional share, warrant and bond issues of local companies. The Bermuda Commercial Bank was traded less heavily than the two major banks in 2000, but also saw its share price increase from $5.65 to $7.45.

Stock Exchange has a positive year overall gains, with BELCO advancing $2 to $23 and KeyTech, the parent company to the Bermuda Telephone Company and Logic Communications, rising from $29 to $40 before stabilising at $35.25. The BSX's two transportation listings, Bermuda Aviation Services and Bermuda Container Line, both recorded marginal increases, as did the three insurance listings.

Among media companies, Bermuda Press (Holdings) Limited was the only one to experience a significant change, with its share price off 15.6 percent at $6.75. Changes in the share prices of consumer companies varied as much as the companies' lines of business, with Bermuda Bakery up $1.05 to $21 and Masters Limited declining $2 to end at $5.

Bermuda Computer Services, the only information systems listing, declined 50 cents to end the year at $11.50 - partly the result of computer manufacturer IBM's decision to bypass retailers and sell machines over the Internet, which hurt BCS's revenue stream. The company has since diversified its business to include Internet access via AT&T and e-commerce solutions through its wholly-owned subsidiary, transact-e-biz.com.

S.A.L. Limited, Stevedoring Services and Solar Enterprises remained quiet last year at $12, $4.25 and $1.50, respectively -- the shares have not been traded since 1998.

Unfortunately for the BSX, computer problems like the Y2K glitch experienced in December 1999 continued in 2000. During one week in July, the exchange encountered serious computer problems that resulted in a distorted picture of the market. The first incident put the BSX index out by 100 points, the second reported the Bank of Bermuda's market capitalisation at $6 billion instead of $600 million and the last posted an $18 million of surplus daily trade on the exchange.

In August, Harry Wilken, president of Jardine Matheson International Services Limited, replaced Eugene Bean as chairman of the BSX's Listing Committee, which vets all applications to list on the exchange. Other changes to the committee included the appointment of Sean Kelly after trading member Randy Sommerville stepped down. The Bank of Butterfield's Ian Coulman and David Surmon of Lines Overseas Management also joined as CIS and trading member representatives, while Peter Everson of Schroders and Trafalgar Securities' Time Grice accepted positions as alternates.