Migros Ticaret AS tumbled to the lowest level in 14 months as the lira weakened to a record low, boosting speculation the Turkish grocery operator will report more losses.
The shares slid 4.2 percent to 15.95 liras at the close in Istanbul, the lowest level since June 2012. The number of shares traded was 161 percent of the stock’s three-month daily average, according to data compiled by Bloomberg. The Borsa Istanbul National 100 index retreated 0.1 percent.
Turkey’s lira depreciated 0.8 percent to 2.7464 per euro at 5:45 p.m., extending its year-to-date decline to 15 percent, the third-worst among emerging-market currencies monitored by Bloomberg. Migros foreign-exchange losses surged to 154.6 million liras ($75 million) in the three months through June, from 17.3 million liras a year earlier, company filings showed Aug. 22.
“A depreciating lira may continue to hurt” the company’s financial results, Burak Isyar, an analyst at Burgan Securities in Istanbul, said in a phone interview today. “Investors may be anticipating a repeat of what happened in the second quarter.”
Istanbul-based Migros reported a loss of 160.8 million liras in the second quarter, compared with a profit of 72.9 million liras a year ago.
Migros, owned by private-equity firm BC Partners Ltd., slumped 26 percent this year, compared with the 16 percent drop in the benchmark equity index. Nineteen analysts recommend buying the shares, while four say hold and three sell, according to data compiled by Bloomberg.