December 21, 2012 / 4:21 PM / in 5 years

Turkish assets ease; Petkim, Anadolu Sigorta up

ISTANBUL, Dec 21 (Reuters) - 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. budget crisis.

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

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