Banvit, a Turkish chicken producer, rallied to the highest close in more than a year on speculation Russia will allocate a quota for poultry as it tries to increase food imports from the country.
Banvit Bandirma Vitaminli Yem Sanayii Ticaret A.S. (BANVT), as the company is known, rose 4.6 percent to 3.65 liras. It finished at the strongest level since July 2013. About 6 million shares traded, more than four times the three-month daily average, according to data compiled by Bloomberg. The stock has advanced 49 percent this month, compared with a 1.7 percent loss for the Borsa Istanbul 100 Index.
Russia wants to buy more food from Turkey after it banned imports from the U.S., the European Union, Norway, Australia, and Canada in retaliation for sanctions placed on it over the conflict in Ukraine. Russia’s food-safety agency said on Aug. 22 it would allow for dairy imports from three Turkish suppliers, fueling speculation the country may add a quota for poultry, according to Bertug Tuzun, an analyst at Istanbul-based Ak Investment.
“If the quota opens, Banvit definitely benefits from this issue, as domestic prices will go up because the excess capacity will be diverted to the Russian market,” Tuzun said by e-mail. “This will positively affect the valuation.”
A spokesman for the company said he was unable to immediately comment when contacted by phone today.
Shares in Pinar Sut Mamulleri Sanayii A.S. (PNSUT), a Turkish milk and dairy producer, increased for a fourth day, rising 0.9 percent to 23.30 liras. The company plans to establish Russia contacts after completing necessary studies, Mehmet Aktas, chief executive officer of Pinar’s parent Yasar Holding, said in a statement after the market closed yesterday.
To contact the reporter on this story: Constantine Courcoulas in Istanbul at firstname.lastname@example.org
To contact the editors responsible for this story: Samuel Potter at email@example.com Zahra Hankir