Sports club fails on the trading floor
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ISTANBUL - Turkish sports club Beşiktaş, whose market value at the Istanbul Stock Exchange, or IMKB, surged to $386 million prior to its championship in the Super League, faced a meltdown of $205 million after its victory.
The shares of the club, which became champion of the Turkcell Super League this weekend, peaked at 12.5 Turkish Liras on May 21 before the victory. But shares started to plummet, and the company's market value declined to $180.5 million on Monday. The shares were trading at around 5.95 liras Tuesday afternoon, representing a decline of 52 percent since May 21.
Still, Tuesday's price represents a rise of 66.7 percent compared to May 8, when the stock started to gain. The rise between May 8 and May 21 stands at a whopping 241.5 percent. Furthermore, the rise from the start of 2008 to May 21 this year stands at nearly 550 percent. On Tuesday, the shares gained nearly 220 percent since Jan. 1, 2008. But the gains of the near past stand in contrast to the plummet that started May 21.
Beşiktaş, with its market value of around $386 million on May 22, had double the market value of Galatasaray. But with its recent decline, it has dropped to $180.5 million, close to equal that of Galatasaray. Shares of rival Galatasaray traded at 125 liras on Tuesday. Fenerbahçe shares traded at 50.50 liras. Fenerbahçe is the most valuable sports share at the IMKB, with around $842 million in market value.