Turkish stocks advanced to an 11-week high as brightening prospects for a cease-fire in Syria eased geopolitical concerns. The lira appreciated against the dollar and bonds rose.
The Borsa Istanbul 100 Index climbed 2.6 percent to 74,893.9 at the close in Istanbul, joining a global stocks rally as investors sought riskier assets. The currency strengthened 0.3 percent to 2.9433 per dollar, and the cost of insuring the nation’s debt fell below 300 basis points for the first time since Feb. 10.
“Turkey is benefiting from better global risk appetite,” said Burak Demircioglu, a trader at Burgan Yatirim Menkul Degerler AS in Istanbul. “That said, reports about U.S. And Russia agreeing provisionally on terms of a limited cease-fire in Syria is supporting Turkish stocks as it offers possible ease of geopolitical risks.”
A limited truce in Syria may be reached soon after Russia and the U.S. agreed provisionally on its terms, U.S. Secretary of State John Kerry said Sunday. Iran’s Press TV reported Monday that the plan calls for a cease-fire from Feb. 27.
Turkiye Garanti Bankasi AS and Akbank TAS, the nation’s two largest lenders by market capitalization, were the biggest contributors to the gains, rising 4.2 percent and 3.2 percent respectively.