Skip to main content

Turkish market & political fears

Reuters reports that Turkish shares are down sharply on worries over the country's political future.

A standoff between supporters of Islamic and secular government has sent shares reeling; at one point in the day's trading, the Turkish market was down close to 8 percent. Reuters has more:

Istanbul's main index (.XU100: Quote, Profile, Research was down 6 percent and Turkish sovereign bonds sold off after a court challenge to the presidential election process and a mass demonstration against the ruling party.

Fears of army intervention, prompted by a warning to the Islamist-rooted AK Party government that it would protect the secular state, added to the concerns.

Meanwhile, Bloomberg reports that the latest drops in the share market and the Turkish lira come at a time when the market was enjoying a bit of a rebound over last year's poor performance.

The lira's drop today pares a gain of 5.4 percent since the start of the year and the benchmark National 100 Index of the biggest stocks was up 20 percent on the year before its slump today. Turkiye Is Bankasi AS, the nation's biggest bank, dropped 45 kurus, or 6.4 percent, to 6.55 liras, and Koc Holding AS, the biggest Turkish company, fell 35 kurus, or 5 percent, to 6.75 liras.

Turkey's economic growth has averaged 7 percent a year since 2002, compared with 1.6 percent in the countries sharing the euro. The country attracted a record $19.8 billion in foreign investment last year, twice the previous year's figure and another $11 billion in the first quarter of this year. Its benchmark stock index, which reached a record April 25, has been the world's 11th best performer this year among 90 global indexes tracked by Bloomberg.


Investor Mark Mobius remained positive about the outlook for Turkey and its share market when he spoke to Bloomberg News last week.

Despite the current political turmoil and last year's poor stock market performance, Mobius said that he is heavily invested in Turkey and sees its stock market as an area of attractive value relative to other global markets.

More info on Turkey's political situation at Bloomberg and MSNBC.

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

Moneyball: How the Red Sox Win Championships

Welcome, readers. To get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter.

The Boston Red Sox won their fourth World Series titleof the 21st century this week.

Having won their first Series in 86 years back in 2004, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it?

Quick background: in late 2002, team owner and hedge fund manager,John W. Henry(with his partners)bought the Boston Red Sox and its historic Fenway Park for a reported sum of $695 million.

Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship.

This brings us to one of my favorite scenes from the 2011 film, Moneyball, in which John W. Henry (played by Arliss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pitt) over to Boston with an excellent job off…