Turkish Construction Firms Tumble After Opposition Election Win
- State-run REIT Emlak Konut leads declines among peers
- Investors discount ruling party promises for mega projects
A man walks past a campaign bus of AK Party’s Istanbul mayor candidate Murat Kurum, in Istanbul on March 31.
Photographer: Ozan Kose/AFP/Getty Images
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Construction firms fell sharply in Istanbul on Monday after Turkey’s ruling party suffered an unprecedented defeat in municipal elections, making it less likely for government-backed mega projects to materialize.
State-run REIT Emlak Konut GYO AS fell as much as 9.8% to 8.99 liras, its biggest decline in a year. The firm, formerly headed by governing AK Party’s Istanbul mayor candidate Murat Kurum, pulled the 48-member Borsa Istanbul REITs index down as much as 4.5%.