Investors May Sell Turkey Banks to Switch to Sberbank, VTB Says

Investors may cut their position in Turkish banks to subscribe to the expected sale of Sberbank shares by the Russian government, VTB Capital said in a note.

Foreign institutional ownership in Turkish banks’ listed shares has recently increased to “historical highs” and “some of these past inflows could prefer to take profits and switch to Sberbank, which is at a discount of almost 50 percent to its Turkish peer,” VTB Capital analysts including Mikhail Shlemov and Akin Tuzun, wrote in an e-mailed note today.

Russia will decide on selling a stake in Sberbank, the country’s biggest lender, on Sept. 13, two people with knowledge of the matter said yesterday.

To contact the reporter on this story: Selcuk Gokoluk in Istanbul at sgokoluk@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.