Turkish Stocks Decline in Longest Losing Streak Since Lehman
Turkish stocks fell for a seventh day, capping the longest losing streak since Lehman Brothers Holdings Inc. (LEHMQ) collapsed in September 2008, as concern deepened the country’s current-account deficit may worsen.
The ISE National 100 Index (XU100) lost 1,080.01, or 1.8 percent, to 59,802.32, bringing the week’s loss to 4.5 percent, the biggest decline among the world’s 70 largest equity markets. The lira weakened for a third day, depreciating 1.9 percent to 1.6976 per dollar. The currency has fallen 9 percent this year, the worst performer among more than 20 emerging-market currencies tracked by Bloomberg.
Concern over Turkey’s current-account deficit swelling to record levels and the lira’s rapid depreciation drove the retreat in stocks, Bali Ekin, head of equity trading at Credit Europe Bank NV in Amsterdam, said in e-mailed responses to questions. “Fund managers are gun-shy on the Turkish market at the moment, and you need some catalysts to inspire them,” he said.
The banking index plunged 2.7 percent, its biggest drop in a month. Turkiye Garanti Bankasi AS (GARAN), the largest company by market value in the index, dropped 24 kurus, or 3.3 percent, to 7 liras, the most in two months.
The market is losing faith that the government has a real plan to deal with the current-account deficit, according to Isik Okte, a trader at Finans Invest in Istanbul.
“Locals are panicking so they are selling their stock holdings,” Okte said in e-mailed comments.
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