Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Bank Asya Slumps Most in a Month on MSCI Removal: Istanbul Mover

May 16 (Bloomberg) -- 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.

To contact the reporter on this story: Taylan Bilgic in Istanbul at tbilgic2@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.