Turkey stocks, lira rally after Erdogan wins vote


18/04/2017 05:45 AST

Turkish stocks and the lira strengthened on Monday after President Recep Tayyip Erdogan narrowly won a referendum on expanding his powers, with investors hoping the outcome would bring much-needed stability.

The lira was trading at 3.67 against the US dollar at 0800 GMT, its value jumping by 1.6 percent. Since the start of this year, the lira has lost four percent of its value against the greenback because of political.

Many investors had been betting on a “Yes” vote as the best way to restore economic and political stability.

The Istanbul stock exchange also rallied after the result, up by 0.74 percent immediately after market opened. By 0800 GMT, stocks had risen by 0.6 percent.

“The market is likely to cheer the continuation of stability, declining chances of an early election and the tight call on the referendum that may contain any market-unfriendly moves,” Ozgur Altug, chief economist at Istanbul-based BGC Partners, said. But Altug said that despite the welcome from the market in the near term, “we do not expect a major breakout.”

The closeness of the result — which the opposition says it will contest — may cause concerns over the risk of continued political instability.

Turkey remains under a state of emergency introduced after last year’s failed coup, expected to be extended by the government for another three months. And in the last 18 months, the country has been hit by a slew of terror attacks.

Turkish voters have approved an executive presidency that will see more power in the hands of Erdogan with the role of premier axed and “one or more” vice presidents chosen by the head of state.

Unemployment figures released on Monday showed a rise in January jobless to 13 percent, a 1.9 percentage point increase compared with the same period in 2016, the Turkish statistics office said.

Arab News
Forex News
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive
Most Viewed Companies
Ticker Price Volume
QNBK 127 470,450
ETISALAT 17.15 1,265,926
GFH 0.6
MMG 0
EMIRATESNBD 8 953,900
DAMAC 3.04 4,480,836
MAADEN 48.95 8,961,398
Recent News

Maaden announces new Vice Chairman
The Saudi Arabian Mining Company (Maaden) announces the Board of Directors decision on June 21, 2017 of appointing H.E. Sulaiman Bin Abdulrahman Al-Gwaiz (non-executive member) as the Vice Chairman f

QNB sees minimal impact from standoff
Qatar National Bank said it expects to meet its earnings targets as the ongoing Saudi-led campaign to ‘isolate’ the country has minimal impact on its operations.

The Middle East’s largest le

Egypt seeks FDI boost as its economy struggles
Egypt’s investment ministry has finalised a much-anticipated set of regulations outlining incentives that it hopes will lure back badly needed foreign investors, Investment Minister Sahar Nasr told R

Qatar bourse says Gulf institutions dumped Qatari shares
The Qatar Stock Exchange on Wednesday said it believed some institutional investors from Saudi Arabia, the UAE and Bahrain dumped shares to drive down the Qatari stock market in the wake of the diplo

UAE banks clear $175bn cheques in 5 months
A total of 12.922 million cheques worth Dh643.7 billion ($175 billion) were handled by the UAE Clearing Cheque System during the first five months of 2017, according to the UAE Central Bank data.

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Looking ahead, what change you are more likely to make in investing in your domestic stock market?