ISTANBUL Dec 21 Turkey's lira weakened on
Friday as local companies bought dollars to meet year-end
commitments, while bonds extended losses in thin trade.
Other emerging market assets were also weakened as investors
cutback on risk following a new setback in talks to avert a U.S.
By 1553 GMT, the lira had weakened to 1.7963 to the dollar
from 1.7868 late on Thursday. Against its
euro-dollar basket, the currency eased to 2.0822
from 2.0762. Traders said local companies had been buying
dollars in early trade.
The yield on Turkey's two-year benchmark bond
closed at 6.02 percent from Thursday's close
at 6.01 percent.
The yield has risen from 5.74 percent on Tuesday, when the
central bank decided to keep its overnight borrowing rate
unchanged. Analysts had expected the bank to cut the rate by at
least 25 basis points.
Istanbul's main share index closed down 0.17
percent at 76,684 points, outperforming a fall of 1.05 percent
in the global emerging markets index.
S hares in Anadolu Sigorta rose 8.89 percent to
0.98 lira after Nemtas Denizcilik, a shipping company subsidiary
of lender Is Bank, said it had mandated its board to acquire up
to 10 percent of the Turkish insurer's capital.
Petrochemicals maker Petkim rose 8.91 percent to
2.69 lira after the company said it would be able to procure
naphtha, its main raw material was, from Iraq, which will reduce
its production costs.
(Writing by Seltem Iyigun; Editing by Catherine Evans)