* Shares down
* Bonds, lira flat
* Moody's conference eyed
By Seda Sezer
ISTANBUL, Jan 28 Turkish shares fell on Monday,
led by a decline in Turkcell shares, while bonds and
the lira were little changed ahead of a teleconference by
Moody's to discuss Turkey's credit rating.
The main Istanbul share index dropped 1.16 percent
to 83,800.11 points, underperforming a fall of 0.44 percent in
the global emerging markets index. The market hit its
highest ever level on Thursday.
The fall was driven by a fall of 0.83 percent in Turkey's
largest mobile phone operator Turkcell to 11.90 lira,
after a top British appeals court said it may give its final
verdict on the dispute between Turkey's Cukurova Holding and its
Russian partner in mobile phone company Turkcell on
Investors eyed rating agency Moody's teleconference to
discuss Turkey "shifting closer" to investment grade, which will
be held at 1500 GMT. It rates Turkey just below investment grade
"In our view, rating agencies will have a window of
opportunity to upgrade Turkey until 1Q 2013, after which the
current account deficit will start increasing as a percentage of
GDP as well," said Finansbank analyst Deniz Cicek in a note.
"So, if we do not see a rating upgrade by Moody's by the end
of 1st quarter, we think chances of Turkey reaching a second
investment grade this year will diminish."
Turkey is hoping another major ratings agency will lift it
to investment grade, after Fitch did so last November. A second
upgrade would enable Turkey to join benchmark investment grade
bond indexes, a status that many funds require before investing.
The yield on the two-year benchmark bond
inched up at 5.91 percent, from Friday's close at 5.88 percent.
By 0939 GMT, the lira was at flat 1.7698 to the
dollar. Against its euro-dollar basket
it slightly eased to 2.0751, from to 2.0742.
(Writing by Seda Sezer; Editing by Toby Chopra)