Akbank TAS fell the most in eight months and Turkish stocks retreated from a record high after Credit Suisse Group AG said a rally in Turkish banks is coming to an end.
Akbank, which has a 10 percent weighting in the Istanbul Stock Exchange National 100 Index, slid 3.8 percent to 9.86 liras at close in Istanbul, the most since May 25. The index slipped 2 percent to 84,755.10, snapping a 10-day advance. The Turkish banking gauge slipped 3.4 percent, the steepest decline since Feb. 23.
Turkish banks are “more vulnerable to potential risk factors that the market has been neglecting so far,” Ates Buldur, an analyst at the Istanbul unit of Credit Suisse, said in an e-mailed report today. The country’s lenders will probably see profit margins narrow due to rising competition and lower interest rates, Moody’s Investors Service said in a report yesterday.
“The positive mood over Turkish banks has been distorted a bit,” Bulent Sengonul, an analyst at Istanbul-based Is Investment, said in a phone interview today. “It could just as well have been some other bank that led today’s declines -- there’s a selloff in banks.”
The banks are becoming more vulnerable to “funding market volatility,” Moody’s said in its report.
Buldur maintained Credit Suisse’s neutral rating for Akbank, saying the lender was “fairly valued.”