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. (dpa)