June 11 (Bloomberg) -- Anadolu Efes Biracilik & Malt Sanayii AS, the beermaker part owned by SABMiller Plc, retreated to the lowest level in a year after President Abdullah Gul approved a law that bans the advertising of alcoholic drinks.
The shares of the nation’s biggest brewer lost 3.3 percent to 22.25 liras at the close in Istanbul, the lowest since June 1, 2012. The drop brought the decline this year to 13 percent. Turk Tuborg Bira ve Malt Sanayii AS, another beermaker, slid 2.3 percent. The benchmark Borsa Istanbul National 100 index fell 1.8 percent.
Gul’s approval of the law, which was published by the Official Gazette today, quashed some investor hopes that he might send it back to parliament after almost two weeks of anti-government protests. The law will come into effect gradually and bans retail sales of alcoholic products between 10 p.m. and 6 a.m.
“There was an expectation that maybe the president would veto the bill and the government would make some concessions,” Melda Agirdas, an analyst at Ekspres Invest in Istanbul, said in a phone interview today. “After Gul’s approval, investors started selling the stock.”
The law, which was passed in parliament late May 23, is among the complaints voiced during protests that spread after police attacked a group of environmentalists occupying an Istanbul park to prevent its redevelopment. Prime Minister Recep Tayyip Erdogan today vowed to go forward with a plan to rebuild an Ottoman-era barracks in the Taksim Square, while police moved back into the area occupied by activists.
Since parliamentary approval, Anadolu Efes, in which SABMiller owns a 24 percent stake, dropped 27 percent, exceeding the benchmark equity index’s 18 percent retreat in the period.
“I expect more selling over the short term,” Agirdas said. “Afterward, investors may perceive a buying opportunity.”
Eighteen analysts recommend investors hold the shares while five say sell, the data show.
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