The rejection by the US house of representatives of the proposed $700 billion bailout deal hit the Dow Jones and NYSE hard, while the UK and other European share indices fell in early trading on September 30 2008, Asian stocks saw large declines – and Bulgaria’s stock exchange was no exception to the trend, registering massive widespread selloffs.

On the Bulgarian Stock Exchange (BSE), the Sofix index of the 20 most liquid stocks recorded a drop of 7.8 per cent to 783.83 points.

The broader BG40 index, which tracks the 40 most liquid companies on the Bulgarian bourse, declined by 8.12 per cent to 188.41 points, the BGREIT, which tracks the performance of real estate investment trusts, fell 3.43 per cent reaching 78.09 points and the BGTR30, in which companies with a free float of at least 10 per cent have equal weight, retreated by seven per cent to 517.88 points.

On September 30, shares in 54 companies exchanged hands in morning trading, with nine in 10 posting losses and only two rising by 11am.

Evrohold Bulgaria was 13.35 per cent down, Grain Foods Bulgaria fell 11.89 per cent, motor vehicle battery manufacturer Monbat lost 11.53 per cent and industrial giant Chimimport declined 9.56 per cent.

Two companies were seeing an increase in value, Dekotest up 5.88 per cent, and Bulgarian Rose Sevtopolis ascending 0.77 per cent.

On September 30, the BBC reported that the main UK and other European share indexes fell in early trading after the US financial rescue plan failed to get house of epresentatives backing.

With the US house rejecting the $700 billion rescue deal, the UK's FTSE 100 was down 0.9 per cent, while Germany's Dax was 1.7 per cent lower. Asian stocks had already seen big declines in Tuesday trading.

Wall Street's Dow Jones index saw its biggest one-day points fall in history on September 29 after the deal was rejected. CNN reported that The Dow Jones industrial average retreated 777 points Monday, its biggest single-day fall ever, well above the previous massive sell out which stood at 684 points.

The trading floor of the Dow Jones went ballistic as the decision was taken and the figures started a HALO free-fall. The selloff frenzy was so thorough and intense that   3,073 fell sharply all over the board with only 161 registering a shy rise in value. The Dow Jones Wilshire 5000 Composite Index recorded a paper loss of $1 trillion across the market for the day, a first.

“It's probably fair to say that we are not going to see any significant stability in the credit markets or the stock market until we see some sort of rescue package passed,” CNN reported Fred Dickson, director of retail research for D.A. Davidson & Co, as saying.

The BBC said that in early trading on September 30, France's Cac 40 had fallen 52 points, or 1.3 per cent. Germany's Dax was down 1.7 per cent or 100 points.

The proposed rescue package would have seen the US treasury being allowed to spend $250 billion to buy banks' risky assets, giving them a much-needed cash infusion. There also would be another $100 billion for use at the US president's discretion and a final $350 billion subject to congressional approval

But the predicament and baleful situation in which Wall Street found itself was further exacerbated by developments overseas.

European governments agreed to a $16.4 billion bailout for Fortis NV, Belgium's largest retail bank. The UK government promptly nationalised mortgage lender Bradford & Bingley, which has a $91 billion mortgage and loan portfolio, the Financial Times said.

In Moscow on September 30, the federal financial markets service suspended equity trading till further notice, Bulgarian news agency Focus reported. The reasons for the measure were not announced, Focus said.