Turkey Financial News

Posted by meb at September 23rd, 2008

Turkish shares fell over 2 percent at the close of the first trading session on Tuesday as global stocks tumbled on investor concerns that a $700 billion bailout for the financial sector may not resuscitate the slumping economy. A record spike in oil prices also renewed concern about consumer spending.

The main Istanbul stock exchange index traded 2.48 percent lower as the lira dropped slightly to 1.24 versus the United States dollar from Monday’s close at 1.2390. The yield on the April 14, 2010 benchmark bond rose over 19 percent.

Oil prices surged on Monday, with U.S. light crude oil for October delivery briefly spiking more than $25 a barrel to hit $130 before pulling back to settle at $120.92, a gain of $16.37 - the biggest one-day dollar gain ever.

The contract for October delivery then eased to just below $109 in Asian trade on Tuesday.

Oil prices had been plummeting since peaking at $147.27 a barrel on July 11, as investors bet that sluggish global growth would diminish oil demand. (more…)

Posted by meb at September 23rd, 2008

Turkish banks are starting to feel the effects of a tightening global credit market and will find it difficult to get long-term credit from abroad, the chief executive of Is Bank said on Tuesday.

“Liquidity is tightening. It will be nearly impossible for the Turkish banking sector to find long term credit from abroad,” Chief Executive Ersin Ozince told CNBC-e in an interview.

Ozince said the ongoing crisis was the biggest he faced until now, and it was not easy to forecast when it would come to an end. (more…)

Posted by meb at September 23rd, 2008

Turkcell, the country’s largest mobile-phone operator, is preparing for the launch of a tender for third generation, or 3G, mobile phone licenses in Turkey, according to Koray Öztürkler, Turkcell’s chief corporate affairs officer in charge of corporate communications and investor relations.

“3G is an important development and we hope the tender will take place this year. We are preparing for this. We are thinking of launching 3G services after the tender period, within months,” he told reporters in Istanbul yesterday.

Turkey held a 3G tender last year, however, Turkcell was the only bidder and the tender offer was cancelled. The cabinet decision to again launch a tender for 3G mobile phone licenses was published in the Official Gazette on Thursday of last week. However, no definite date for the tender has yet been set. According to the announcement, the minimum value of the ‘A License’ is 285 million euros, while the ‘B License’ has been valued at 250 million euros, and the price for the ‘C License’ is 214 million euros, and 178 million euros for the ‘D License.’ (more…)

Posted by meb at September 23rd, 2008

The Turkish real estate sector will experience a period of stagnation due to the global financial turmoil stemming from the collapse of the US subprime mortgage market, a real estate sector representative has predicted.

Association of Real Estate Investment Companies (GYODER) President Bekir Cumurcu told the Anatolia news agency that he expects a slowdown in the Turkish real estate sector to begin early next year and persist until 2010.

Pointing to the unprecedented developments in global markets, Cumurcu said he does not anticipate a recovery in the short term. He noted that the real estate sector is among the most fragile sectors and that the global financial crisis therefore is having a much greater effect on it compared to other sectors. Stating that it will take time for the sector to bounce back from the negative impact of the crisis, he said the growth in the sector will start to decelerate in 2009. (more…)

Posted by meb at September 22nd, 2008

Some small investors in Turkey have been affected by the collapse of Lehman Brothers. With Citibank acting as an intermediary for the sale of some Lehman securities in Turkey, the Capital Markets Board said it is looking into the matter

The bankruptcy of the U.S. finance giant Lehman Brothers, which had the globe trembling, has created a group of aggrieved people in Turkey, as Citibank Turkey had acted as intermediary for some Lehman securities.

The Capital Markets Board, or SPK, has launched an investigation into the issue, and plans to overcome the uncertainty early this week.

“Citibank acts as intermediary for several local and global investment products,” said bank authorities upon the complaints of some small investors that had bought Lehman products from the bank. “Citibank Turkey has acted as intermediary for the purchase of some equities exported and guaranteed by a European subsidiary of Lehman Brothers Holding Inc., which made a bankruptcy application in the U.S.” (more…)

Posted by meb at September 12th, 2008

The Turkish prime minister met the head of a telecommunication provider Ericsson in Istanbul on Thursday, the company said on Friday.

Carl-Henric Svanberg, the president and CEO of Sweden based telecommunication provider Ericsson, paid a courtesy visit to Turkey’s Premier Tayyip Erdogan on Thursday, a company statement said.

Svanberg also met executives of Turkey’s telecom sector in Istanbul, and later paid a visit to Erdogan.

Ericsson has been operation for 118 years in Turkey, and made its first investment in the country by establishing a telephone line at the Dolmabahce Palace in Istanbul in 1890, which still works. (more…)

Posted by meb at September 12th, 2008

A soon-to-be-finalized free trade agreement between the European Union and South Korea is causing concern for Turkey, as its market will be indirectly opened to South Korean products due to its customs union agreement with the EU.

Any country that signs a free trade agreement with the EU enjoys tariff-free access to the Turkish market, a one-way trade that works to the disadvantage of Turkish producers, According to the 1996 customs union agreement.

The EU was trying to convince South Korea to sign another free trade agreement with Turkey as well, officials from Turkey’s Undersecretariat of Foreign Trade (DTM) Referans daily reported. (more…)

Posted by meb at September 12th, 2008

Turkey’s state-run airliner Turkish Airlines (THY) has become the 7th largest airline company in Europe, outpacing Italy’s Alitalia by passengers carried in the first seven months of the year.

THY carried 12.16 million passengers, a 15.7 percent rise in January-July period, and climbed to the 7th rank, according to figures given by the Association of European Airlines.

THY grabbed troubled Italian airliner Alitalia’s position as the Italian carrier was having financial problems and saw 17.4 percent fall in the number of passengers to 11.8 million. Italian government mulls to sell Alitalia.

THY ranked the 8th in 2007 with its 10.5 million passengers carried. (more…)