Turkish stocks under pressure from terror attack

By bne IntelliNews June 30, 2016

Emerging markets stocks and currencies rose for a second day on June 29 as Brexit worries abated but Turkish stocks failed to benefit from the risk-on mood as the terror attack in Istanbul weighs on investors sentiment.

The main stock exchange index, BIST-100, fell 0.28% on June 29, led by losses in aviation shares. Turkish Airlines (THY) and TAV Havalimanlari, the operator of the airport that came under attack on June 28, saw their shares fall 2.7% and 6.5% respectively. Shares in Pegasus Airlines, Turkey’s leading low-cost carrier, were down 1.22%, while shares in Celebi Hava Servisi, an airport ground services operator, declined 2.76%.

Ankara’s recent diplomatic charm offensive, aimed at improving ties with Russia and Israel, failed to lift Turkish stocks. But, the local currency did relatively better. The lira gained 0.09% against the greenback to trade at 2.8970 per dollar on June 29.

Yield on the benchmark 10-year bond dropped to 8.78% from 9.20% on June 24, supported by the central bank’s statement that the monetary authority would provide additional liquidity. The bank said on June 29 that it decided to continue conducting the outright purchase auctions until the end of this year to support efficient Turkish lira liquidity management. The size of the Open Market Operations Portfolio, which is currently set at TRY 9bn nominal, is expected to increase to TRY14bn nominal as of year-end, the bank announced.

But, Fitch warned in a report on June 29 that the Brexit vote still creates significant uncertainty for Emerging Europe. An EU slowdown would hit growth while political repercussions are negative, but unclear, the rating agency said.

Related Articles

Turkey ups steel exports 28% in 2024 driven by EU shipments, US takes just small percentage

Turkey upped its steel exports by 27.6% y/y in 2024 to 13.4mn tonnes, according to the Turkish Steel Association (TCUD). Growth was driven by shipments to the European Union (5.9mn tonnes, up ... more

TPAO arm contracts Subsea7 for Sakarya gas field work offshore Turkey

Turkish Petroleum Offshore Technology Centre AS (TP-OTC) has contracted international offshore service provider Subsea7 to provide inspection, repair and maintenance (IRM) services at the Sakarya ... more

Turkish firm Bonysocks earmarks $50mn to build Egyptian factory

Turkish socks manufacturing company Bonysocks plans to invest $50mn to build a new factory in Egypt, Al Ahram reported on January 12 citing the Turkish Ambassador in Cairo, Salih Mutlu Şen.  ... ... more

Dismiss