Kiev - Ukrainian capital markets continued a tailspin on
Wednesday, losing almost 5 per cent of value in another day of hectic
and heavy trading.
The former Soviet republic's capital markets began a precipitous
drop on Tuesday when they fell 5 per cent, the Interfax news agency
reported.
Shares traded on Ukraine's leading PFTS electronic exchange during
Wednesday were reduced in value an aggregate 4.98 per cent.
The two day drop, combined with consistent losses beginning 2008,
has reduced the overall worth of Ukrainian shares by some 50 per cent
since January, according to the report.
The biggest losers during the Wednesday drop were the Kharkiv
Tractor Factory (down 50 per cent), the insurance corporation Otranta
(down 30 per cent), and the leading bank Megabank (26 per cent), PFTS
officials said.
Other loss-leaders in heavy industry were the major producers of
steel, steel pipe, chemicals, automobiles, down between 11 and 19 per
cent.
Also hard hit were the financial institutions Raiffaisenbank Aval
and Ukrsotsbank, falling in value 15 and 11 per cent, respectively,
over the trading day.
An accelerating exodus of foreign capital from Ukrainian stocks is
the main cause of the dramatic losses, market officials said.
'But we can't just blame the foreigners (and their capital),' said
Serhy Biriuk, PFTS head. 'The fact is that last year's record highs
were made by Ukrainians (and their capital) ... and right now they
are getting out of the market.'
The downward trend would continue 'as least as long' as
international economic news, particularly from the US, would continue
to be negative, Biriuk predicted.
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