Declines of 7 percent in a couple of national stock markets were echoed in a Richmond-area index of the 20 largest companies here. The Bloomberg Richmond Index lost 6.6 percent of its value yesterday.

LandAmerica Financial Group Inc. took the biggest hit locally. Stock in the real estate transaction services company in Henrico County dropped 37 percent to close at $12.85.

The Dow Jones industrial average plummeted below 9,000 yesterday for the first time in five years. It fell 678.91 points, or 7.33 percent, to close at 8,579.19.

The Standard & Poor's 500 index closed at 909.92, down 7.62 percent. The Nasdaq composite index closed at 1,645.12, down 5.47 percent.

The Bloomberg-created index consists of 20 companies with Richmond-area headquarters and annual revenue of more than $50 million. The index includes companies in industries from retail to finance to manufacturing.

For the year, it is down 32.7 percent. It closed yesterday at 263.90, down 18.69. The last time the local index closed this low was in November 2003. The Dow's close yesterday was the lowest since May 2003.

"Based on the continuing decline in the stock market prices, investors are worried that the financial crisis will cause the economy to contract for some time," said Christine Chmura of Chmura Economics & Analytics.

Consumers are cutting back and businesses are laying off workers, she said. "We will continue to see the economy in a recession through at least the first quarter of next year."

Contact Carol Hazard at (804) 775-8023 or chazard@timesdispatch.com.