Turkey's Enka shares fall on Russia trade concerns

Enka shares declined 7 percent to 10.60 YTL in the morning trade on the Istanbul Stock Exchange, bringing the company's market value down to 12.7 billion YTL ($10.7 billion).

Investors are concerned that Enka, which has won contracts to build airports and power stations in Russia and modernize Russia's parliament buildings, may lose out as the military conflict in Georgia hurts Russia's relations with the North Atlantic Treaty Organization or NATO, in which Turkey is a member, analysts said.

"Enka has been severely punished due to its heavy exposure to the Russian market, on concern that Turkish companies may lose out due to the Turkish-NATO relationship," Stuart Hackett, a trader at Ekspres Invest in Istanbul, told Bloomberg News.

Enka shares have dropped 21 percent since Aug. 8, when Russian and Georgian troops started fighting over the breakaway Georgian regions of South Ossetia and Abkhazia.

Almost half of Enka's backlog of orders is in Russia, and more than half its assets are in Russia and other CIS countries, Hackett said. Enka owns the Ramstore chain of supermarkets in Russia.