Asya Katilim Bankasi AS slumped the most in a month after MSCI Inc., whose gauges are tracked by investors managing about $7 trillion, decided to remove the Islamic lender from its Turkey index.
The shares of Bank Asya, as the company is known, dropped 3.2 percent, the biggest decline since April 18, to 2.15 liras at 2:40 p.m. in Istanbul. About 16.4 million shares traded, or 1.3 times the stock’s three-month daily average. The Borsa Istanbul National 100 index fell 0.2 percent.
The change in the MSCI Turkey index is effective as of the close on May 31, the New York-based provider of indexes and portfolio analytics said in a statement on its website yesterday. Bank Asya this month reported a 10 percent decline in first-quarter net income to 45 million liras ($25 million).
“Investors are betting that the funds tracking the index will reduce their exposure,” Murat Borekci, an analyst at Yapi Kredi Yatirim in Istanbul, said in e-mailed comments today. Borekci, who recommends investors hold the shares, has a 12-month price estimate of 2.5 liras on Bank Asya.
Bank Asya trades at 7.5 times estimated 12-month earnings, according to data compiled by Bloomberg. That compares with a multiple of 8 for Istanbul-based Albaraka Turk Katilim Bankasi AS, and 10 for Dubai Islamic Bank PJSC, according to data compiled by Bloomberg.
Six analysts recommend buying the shares of Bank Asya, while nine say hold and four recommend selling them, the data show.