Turkish markets drop on profit-taking post-ruling
Güncelleme Tarihi:
Turkish stocks, the lira and yield eased on profit taking on Friday following gains earlier in the week when foreign investors poured into the market on the back of easing political uncertainty after a key court ruling regarding ruling AKP.
Istanbul's main index, trading in average volumes, fell 0.72 percent to 41,899 points in the midday trading.
Turkey's lira currency was trading at 1.1590 against the dollar, softer than its 1.1585 close on the interbank market on Thursday.
The yield on the April 14, 2010 benchmark bond fell to 19.05 percent, having traded at its strongest levels since April on Thursday to close at 18.82 percent.
Analysts said investors should not expect Turkish stocks to rise much more in the short term as although they remain somewhat inexpensive compared with emerging markets peers, they will start to be driven more by global markets and earnings figures due out soon.
Markets rallied earlier in the week on expectations that Turkey's highest court would not close down the ruling Justice and Development Party on charges of being the focal point of anti-secular acts. The confirmation sent markets further into the black.
"The expectation that the AKP was not going to get closed was priced aggressively into the market. Meanwhile we outperformed EMEA by close to 40 percent ... so everyone who bought into the expectation is selling some of their profits," Reuters quoted, sales manager Can Oksun at Ekspres Yatirim Securities, as saying.
Turkish stocks have risen about 28 percent since the beginning of the month, though they are still down some 24 percent since the start of the year.
Several banks upgraded their views on Turkish markets following the ruling.
Rating agency Standard & Poor's on Thursday revised its outlook on Turkey to stable from negative on the diminished near-term political uncertainty after the country's top court's decision not to ban the ruling AKP.