IMKB-100 rises on Fed comments
Posted by meb at February 3rd, 2007
Turkish stocks climbed for the first time in five days after the Federal Reserve left interest rates unchanged and signaled U.S. inflation is growing “modestly,” increasing the appeal of riskier emerging-market assets.
Türkiye Garanti Bankasi AŞ, the third-biggest lender, and Türkiye İş Bankası AŞ, the nation’s largest bank, paced the gain.
The İMKB National 100 Index rallied 1119.41, or 2.7 percent, to 42,301.96 at the close of trading in Istanbul. Eighty-two shares rose, 8 declined and 10 were unchanged. The index reached its highest level since May 11. About $1.4 billion of shares exchanged hands, more than the daily average of $931 million last month.
The Fed on Thursday kept the U.S. benchmark lending rate at 5.25 percent and said the world’s biggest economy is picking up while the pace of price increases has slowed.
JPMorgan Chase & Co. yesterday downgraded Turkish equities to “neutral” from “overweight,” citing concern the Fed would signal it will keep raising interest rates.
Garanti rose 35 kurus, or 6.6 percent, to 5.65 liras. İşbank gained 40 kurus, or 6 percent, to 7.1 liras. The two stocks together account for 18 percent of the benchmark index by weighting.
Petrol Ofisi AŞ, the biggest fuel retailer, jumped 14 kurus, or 2.9 percent, to 5 liras. The company won’t pay the second installment of a fine imposed by regulators for distributing fuel to unlicensed gas stations, Petrol Ofisi said in a statement to the stock exchange yesterday.
Petrol Ofisi, which had agreed in December to pay a charge of 587 million liras ($416 million) over 18 months, said an Istanbul court yesterday suspended collection of the fine, following a similar ruling by an Ankara court last month.
Doğan Şirketler Grubu Holding AŞ, Petrol Ofisi’s main owner, soared 13 kurus, or 5.5 percent, to 2.5 liras.
Yapi & Kredi Bankasi AŞ, the country’s fourth-biggest publicly traded lender, rose 12 kurus, or 4.4 percent, to 2.86 liras. The stock may rise 36 percent, Raymond James said in a research note to investors. The brokerage has a “buy” recommendation on the stock.
source: www.thenewanatolian.com
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