Stocks in Stockholm plunged in May as investors dumped holdings and prepared for more stormy waters on the financial markets.

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The OMX Stockholm 30 index dived more than 7 percent in May, making it the most lousy month since October 2008. A number of negative factors, such as eurozone dept crisis, Germany's ban of naked short selling and rising unemployment, have made investors in Stockholm flee stocks, take profits and turn to more safe nest eggs.

Since the turn of the year stocks are up less than 3 percent - compared to last year's rally of 45 percent.

"Savers have reacted very quickly on the eurozone crisis. The reactions were stronger than during both the financial crisis and during the busiest days of the IT crash," Claes Hemberg, savings economist at online broker Avanza Bank, said.

A sum-up including trade with online brokers Avanza, Nordnet, Etrade and Skandiabanken showed that more deals were made in May than ever before.

Global equities began the new decade in a brisk, optimistic spirit but have taken a lot of beating during the last months. Germany rocked global markets and caused widespread consternation when Berlin banned so-called naked short selling -- the sale of bonds or shares by market players who neither hold the security nor have borrowed it to make their trade.

“[Angela] Merkel pulled down the pants on investors and the market did not like what it saw," said Johan Tidestad, head of Swedish online broker Nordnet.

The National Institute for Economic Research said Monday that The Consumer Confidence Indicator, which measures confidence in personal finances and the Swedish economy, fell 0.7 points to 18.8 in May. However, consumer opinion on the economic situation remains considerably more positive than normal.