Turkey Financial News

Posted by meb at March 25th, 2009

Turkish Prime Minister Tayyip Erdogan announced Wednesday new economic measures including value added tax (VAT) cuts for the sale of businesses and in the furniture sector for three months in a bid to revive the country’s slowing economy.

The government will reduce value-added tax in the furniture sector, for the sale of businesses, and on some industrial machines used by Small and Medium Sized Enterprises (SMEs) to 8 percent from the previous 18 percent, Erdogan said at an election rally campaign meeting in Turkey’s central province of Cankiri. (more…)

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. (more…)

Posted by meb at March 24th, 2009

Turkish markets joined soaring world markets as investors were cheered by the US government’s plan to help banks remove as much as $1 trillion in bad assets from their books. The benchmark index of the İstanbul Stock Exchange (İMKB) rose 755.77 points, or 3.14 percent, in the morning trading session over Friday’s closing level and reached 24,794.66 points.

The highest level reached during morning trade was 24,832.84 points, from where the index subsequently retreated. (more…)

Posted by meb at March 22nd, 2009

The Turkish government’s budget deficit rose to 7.4 billion TL ($4.35 billion) in February 2009, revealing a sharp 824 percent jump compared to the same month of 2008, the Finance Ministry announced on Friday.

The budget deficit registered in the same month of 2008 was 1.02 billion Turkish lira (TL) ($600 million).

Budget spending totaled 25.8 billion TL ($15.1 billion) in February, while the budgetary income was 18.4 billion TL ($10.8 billion), the ministry said. (more…)

Posted by meb at March 16th, 2009

Turkish carmakers, including Tofas Turk, a joint venture between Italy’s Fiat and local group Koc and commercial vehicle maker Karsan, gained in Istanbul trading as the new stimulus package, including tax cuts on new vehicles, takes affect on Monday.

Tofas advanced the most in nine weeks, adding more than 5 percent in the first trading session later lost its early gains and closed 1.5 percent, while Karsan gained the most in four months, up nearly 14 percent. (more…)

Posted by meb at March 15th, 2009

A fourth stimulus package announced by the government has raised hopes that the markets will take a deep breath amid the uncertain atmosphere caused by the ongoing global financial turbulence.

The new package, the total cost of which is expected to be TL 5.5 billion, brings noteworthy tax cuts and incentives to help troubled sectors. The package will go into force following Cabinet approval, expected to take place soon. (more…)

Posted by meb at March 14th, 2009

The global crisis has bottomed out, according to Erkin Şahinöz, chief economist at Eczacıbaşı Securities in Istanbul. The USdollar will start to fall, while those investing in gold may suffer this year, Şahinöz says, adding that investors may start buying Turkish stocks provided they are able to ’forget that they have bought shares’ for the next 18 months.

The U.S. dollar, having appreciated 11 percent against the Turkish Lira since the start of the year, has come to the end of the line, according to the chief economist at Eczacıbaşı Securities.

“The greenback will not rise to these levels anymore,” Erkin Şahinöz told business daily Referans. “It will decrease to 1.50 liras.” The U.S. dollar was trading at just above 1.70 liras on Friday, having fallen 5.7 percent since its peak of over 1.80 on March 9. (more…)

Posted by meb at March 14th, 2009

Mark Mobius, the investor who oversees more than $3.5 billion invested in Turkey, said Turkey, Egypt, China and Brazil are countries to invest in.

Emerging markets are more attractive compared to developed ones, as they will recover faster, Mobius, chief of Templeton Asset Management, said in an interview with Newsweek magazine. (more…)