Posted by meb at March 24th, 2009

Turkish asset prices rose on Tuesday, supported by increasing global risk appetite and hopes for a near-term loan agreement with the International Monetary Fund.

The lira currency firmed to 1.6540 against the dollar in interbank trade, gaining nearly one percent from a close of 1.6690 on Monday.

“Global markets have managed to sustain an upward trend for some two weeks. This trend has brought the lira back to 1.65 levels from around 1.80 (against the dollar) in spite of the message from global economic data,” said a foreign currency dealer at one bank who declined to be named.

“When you add to this the expectation that an agreement may be made with the IMF after the election, the lira looks like firming for some period to come. In the short term it may test the 1.6150 levels,” he said.

Turkey will be close to an IMF loan deal after local elections being held on March 29, Economy Minister Mehmet Simsek was reported as saying on Tuesday in an interview with Aksam newspaper.

An agreement has been blocked up to now despite months of talks because of differences over issues such as state revenue administration and steps to rein in the unregistered economy.

STOCKS ALSO FIRMER

The main share index ended the trading day with 0.33 percent rise after ending the the morning session 1.32 percent higher.

Tuesday’s gains extended a 3 percent rally on Monday driven by news the U.S. government plans to purge banks of up to $1 trillion in toxic assets.
source: Hurriyet daily news

Shares in conglomerate Sabanci Holding were up 0.7 percent after the head of its retail division told Reuters in an interview that it aimed to increase its retail group sales by 20 percent in 2009 after revenues of 4 billion lira ($4.2 billion) last year.

Fuel retailer Turcas Petrol’s stocks were unchanged after it said its venture with Socar of Azerbaijan would increase its capital threefold to 200 million lira ($120 million).

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