Morgan Stanley, a top US investment bank, yesterday said its second-quarter earnings dropped 36 per cent as the weak stock market hurt stock trading revenues, brokerage commissions and fees from helping companies to sell stock.

Morgan Stanley reported net income of $930 million (#1.1 billion), or 82 US cents a share, for the three months ended May 31st. That compared with a profit of $1.26 billion, or $1.26 a share, in last year's second quarter and was slightly ahead of the consensus forecast.