The shares of electricity firm La Electricidad de Caracas plunged 15 percent in mid-session on Tuesday at the Caracas Stock Exchange amidst investors' fears following President Hugo Chávez' announcement that he intends to nationalize the company, traders said.

The shares of the major privately owned utility company in Venezuela, where US firm AES Corp. owns a majority stake, dropped to 21 cents at 11:30 am, its lowest price over the last 10 months, Reuters reported.

"Shareholders are terrified following the announcements made yesterday (Monday)", a trader said referring to the statements made by the Venezuelan Minister of Energy and Petroleum Rafael Ramírez that the Venezuelan State is to take control of 87 percent of EDC shares, amid a process of nationalization of the domestic energy sector.