Turkish police detain 50 in stock market manipulation investigation

The stockbrokers and businessmen detained were among those taken in for questioning in a series of dawn raids following a four month investigation into suspected market manipulation, the Financial Times reported citing a regulatory source.

The raids came shortly after the appointment of a new chairman at Turkey’s Capital Markets Board, or SPK. Dr Vedat Akgiray is described as dynamic and keen to get down to business by market participants, the FT said.

Shares in a number of smaller Turkish companies fell sharply on Thursday after news of the arrests; however, there is no suggestion that any of the companies are involved in market manipulation.

Among the businessmen detained was the Scottish executive Duncan Blake, head of the British Chamber of Commerce in Turkey, who runs food processing company, Merko Gida, whose shares have recently dropped sharply.

“We’re in shock,” FT quoted a spokesman at the company as saying, adding that lawyers were trying to find out why he had been detained in what appeared to be a misunderstanding.

“I think he’ll be back at his desk by Monday at the latest,” the spokesman added.

Turkish media also named Galip Ozturk, owner of the bus operator Metro Turizm and a businessman, among those in custody. Necmi Hatipoglu, coordinator at Metro Turizm, said they had been unable to reach Ozturk and lawyers were seeking more information from the prosecutor’s office.