Turkish markets fell on ruling AKP closure case
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Turkish stocks and lira currency fell sharply on Monday after the Constitutional Court decided to take on the case against AKP, demanding its closure. Lira lost more than 2 percent against dollar and shares ended down 1 percent. (UPDATED)
Lira traded over 1.33 to the dollar, having closed on the interbank market on Monday at 1.3070. It closed on Friday at 1.2945. Istanbul's main stock index extended losses after the court's announcement, weakening as much as 3.4 percent to its lowest level this year. Shares later trimmed their losses to close down 1.23 percent at 39,015.44 points in Istanbul.
Market players say global conditions are also negative and rising political tension with the AKP case made Turkish markets the worst performer. This triggered foreign fund to exit Turkish markets, while local investors with huge foreign currency deposits stop selling.    Â
Murat Salar, Deputy General Manager of A Yatirim, said the appreciation period of lira has come to an end. "The moves of dollar will be determined by the economic data from foreign markets as well as the tension in local politics. The tension makes more likely to see a rise in foreign exchange rates in the near term", he said adding if dollar goes above 1.32 YTL then it could move up to 1.40 YTL. Â
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