Boyner Drops as Protests Disturb Turkish Retail: Istanbul Mover
Boyner Buyuk Magazacilik AS (BOYNR), a Turkish clothes and cosmetics retailer, dropped the most in a week after the government said businesses supporting anti-government protesters would “pay a price.”
Shares of the Istanbul-based company fell 2.4 percent, the most since June 10, to 5.76 liras at the close. Protests continued in the city over the weekend and thousands of workers went on strike today, after Premier Recep Tayyip Erdogan addressed supporters at a pro-government rally.
Erdogan has blamed business leaders, foreign media and “extremist groups” for fueling the unrest that started May 31 and was triggered by the rejection of plans to redevelop a public park. Boyner has slumped 10 percent this month, outpacing an 8.2 percent drop for the Borsa Istanbul Stock Exchange National 100 Index. (XU100) A gauge of consumer services companies slumped 1.3 percent today, matching a decline by the same amount for the benchmark.
“Retailers have generally been hard hit by protests,” Ilyas Safa Urganci, an analyst at Is Investment in Istanbul, said in a phone interview. “Shopping mall occupancy rates are expected to decline, and many Boyner stores are situated in such malls in big cities.”
The protests have broadened into a wider movement targeting the government for what demonstrators say is an increasingly authoritarian approach.
“We know very well those who sent 30,000 rations to Taksim Square,” the main site for the demonstrations in central Istanbul, the official Anatolia News Agency cited the prime minister as saying yesterday. “We also well know those who host terror-collaborators in their hotel. Won’t there be a price to pay for these?”
Boyner had 145 stores across Turkey at the end of 2012, according to its website. The company posted a loss of 3.82 million liras ($2.1 million) in the first quarter after a profit of 894,818 liras in the same period a year earlier, according to data compiled by Bloomberg.
More than 58,000 Boyner shares were traded today, about 24 percent of the stock’s three-month daily average, according to data compiled by Bloomberg.
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