Oct. 2--Stock-market turmoil wiped out about $16 billion in equity value for some of the Richmond area's largest publicly traded companies in the third quarter.

The total market capitalization of companies on the Richmond Index dropped from about $113 billion on June 30 to about $97 billion at the close of trading on Sept. 30. That was a 14 percent decline.

The Bloomberg-created index consists of 21 companies with local headquarters and annual revenue of more than $50 million. The index includes companies in various industries from retail to finance to manufacturing.

Six companies on the Richmond index saw gains during the quarter, led by medical and surgical instruments distributor Owens & Minor Inc., whose market capitalization jumped about $126 million to more than $2 billion.

Others, such as coal giants Massey Energy Co. and James River Coal Co., had large declines, reflecting an overall drop in energy-related stocks. Massey, for example, saw its market cap fall by about $4.5 billion to just over $3 billion.

Genworth Financial Inc.'s market value also dropped about $4 billion to $3.7 billion, as financial sector stocks were generally hammered, while struggling retailer Circuit City Stores Inc. saw a $359 million decline to $128 million.

The drop in equity value could reverse depending on many factors, including the fate of a proposed bailout for the financial system, the overall health of the economy, and the financial performance of individual companies.

"I would expect that most investors are seeing that [decline in the index] as a paper loss right now, and that within a year they may see those losses turning into gains," said economist Christine Chmura of Chmura Economics and Analytics in Richmond.

Volatility in the markets seems to be the main source of uncertainty for investors now. While local investors may hold stocks in Richmond-area companies, "local investors are sweating bullets over all of their portfolio of equities, not just simply the ones here," said Pat Fishe, a professor of finance at the University of Richmond.

EQUITY IMPACT:

Market capitalization for the 21 companies in the Richmond Index and their percentage change during the third quarter:

--Altria Group Inc.: $40.8 billion ( -5 percent)

--Dominion Resources Inc.: $24.8 billion (-9.6 percent)

--MeadWestvaco Corp: $3.98 billion ( -3.9 percent)

--Genworth Financial Inc.: $3.72 billion (-51.6 percent)

--Markel Corp.: $3.46 billion (-5 percent)

--CarMax Inc: $3.08 billion ( -.05 percent)

--Massey Energy Co.: $3.02 billion (-60 percent)

--Brink's Co.: $2.89 billion ( -6.7 percent)

--Albemarle Corp.: $2.8 billion ( -22.7 percent)

--Owens & Minor Inc.: $2.0 billion ( +6.7 percent)

--Hilb Rogal & Hobbs: $1.7 billion ( +7.7 percent)

--Universal Corp: $1.25 billion (+3.8 percent)

--NewMarket Corp.: $814 million ( -20.5 percent)

--Colfax Corp: $735 million (-33.4 percent)

--James River Coal Co.: $602.5 million ( -59 percent)

--Tredegar Corp: $599 million (+18.8 percent)

--LandAmerica Financial Group Inc.: $375 million ( +9.3 percent)

--Media General Inc.: $284 million ( +4 percent)

--Circuit City Stores Inc.: $128 million (-73.7 percent)

--Dynex Capital Inc. : $95.5 million (-10.8 percent)

--Chesapeake Corp: $13.8 million (-67 percent)

NOTE: Media General is the parent company of the Richmond Times-Dispatch.

SOURCE: Bloomberg News; Times-Dispatch research

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