Amsterdam - The main index of the Amsterdam stock exchange (AEX) dropped to 379.21 points just after 1 pm (1100 GMT) on Monday, down 5 per cent and approaching this year's record low of 374.09 reached on July 16.

By 2 pm the index had slightly recovered, 4.55 per cent down at 381.37 points.

Reflecting turmoil on Wall Street, financial stock suffered most, starting with insurance company Aegon (down 12.55 per cent), followed by Belgium-Dutch bank and insurance company Fortis (down 11.55 per cent), and ING bank (down 7.47 per cent).

Oil and gas group SBM Offshore stock also fell 6.89 per cent.

Aegon, Fortis and ING Bank are known to have substantial investments in the US market.

The three financial firms are due to announce later on Monday further details about investments held through Lehman Brothers.

Lehman Brothers, the fourth largest investment bank in the US, filed for bankruptcy protection on Monday. (dpa)