Akbank Drops Most in 8 Months as Sector Plunges: Istanbul Mover
Akbank, which has a 10 percent weighting in the Istanbul Stock Exchange National 100 Index, slid 3.2 percent to 9.92 liras by 2:54 p.m., falling the most since May 25. The index retreated 1.1 percent to 85,473.66, snapping a 10-day rally and paring its 10th weekly gain to 0.4 percent. The Turkish banking gauge slipped 2.5 percent, the steepest decline since July 5.
Turkish banks are “more vulnerable to potential risk factors that the market has been neglecting so far,” Ates Buldur, an analyst at the Istanbul unit of Credit Suisse, said in an e-mailed report today. Turkish banks are expected to see profit margins narrow due to rising competition and lower interest rates, Moody’s Investors Service said in a report yesterday.
“The positive mood over Turkish banks has been distorted a bit,” Bulent Sengonul, an analyst at Istanbul-based Is Investment, said in a phone interview today. “It could also have been some other bank that led today’s declines - there’s an overall selling in banks.”
The banks are becoming more vulnerable to “funding market volatility,” Moody’s said in its report.
Buldur maintained his neutral rating for Akbank, saying the lender was “fairly valued.”
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