Banvit Rises to Two-Week High on Poultry Price: Istanbul Mover
Stock Chart for Banvit Bandirma Vitaminli Yem Sanayii ASA (BANVT)
Banvit Bandirma Vitaminli Yem Sanayii AS (BANVT) advanced to a two-week high after Hurriyet newspaper reported poultry prices rose amid increased demand during the Muslim month of Ramadan.
The shares climbed 3.4 percent to 3.62 liras at 2:26 p.m. in Istanbul, the highest level since July 2. More than 355,000 shares changed hands, 93 percent of the stock’s three-month daily average, according to data compiled by Bloomberg. The Borsa Istanbul National 100 (XU100) index jumped 2.2 percent.
Poultry prices rose to 6.5 liras ($3.4) per kilogram, up 35 percent from 4.8 liras last month, Hurriyet newspaper reported today, citing Osman Yardimci, the deputy chairman of an industry group. Ramadan started July 9 in Turkey. Muslims break day-long fasts with communal meals at sunset during the month, with food prices typically rising due to higher spending.
“Poultry demand increases during Ramadan,” Bertug Tuzun, an analyst at Ak Investment in Istanbul, said in a phone interview. “Summer has also traditionally been the high season for consumption.”
Banvit shares declined 6.2 percent this year, compared with a 3.4 percent retreat in the benchmark index. Banvit has been underperforming due to its foreign-currency exposure, Tuzun said.
Balikesir, Turkey-based Banvit has short-term debt of $85.7 million and 50.4 million euros as of the end of March, according to company filings to the stock exchange. The lira depreciated 8.2 percent against the dollar and 7 percent against the euro this year. The company reported a first quarter loss of 5.8 million liras ($3 million), compared with net income of 14.5 million liras in the same period last year, according to Banvit filings.
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