Park Declines for a Fourth Day as Copper Slumps: Istanbul Mover
Park Elektrik Uretim Madencilik Sanayi ve Ticaret AS, the Turkish company which derives more than three quarters of its revenue from copper sales, fell for a fourth day on concern a decline in the base metal’s prices won’t bode well for earnings.
The shares lost 1.5 percent to 6.6 liras at the close in Istanbul, the lowest level since March 25 and extending a four- day drop to 7 percent. Trading volume was about half the stock’s three-month daily average, data compiled by Bloomberg show. The Borsa Istanbul National 100 (XU100) Index decreased 0.4 percent.
“Considering the company’s dependence on copper for earnings, such short-term reaction could be expected,” Koray Pamir, an analyst at Finans Invest in Istanbul, said by phone.
Copper for delivery in three months dropped as much as 3.6 percent on the London Metal Exchange on concern that demand from China, the biggest user, will weaken after the International Monetary Fund cut its growth forecast for the nation. Park’s 2012 net income rose 6 percent to 107.3 million liras ($59.6 million) as 87 percent of sales came from copper, according to company data. Park has been operating a copper mine in Siirt, southeast Turkey, since 2006, according to its website.
Copper at present levels or lower would create a “downside risk” for second-quarter earnings, Pamir said.
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