* Turkish lira, shares up after sell-off on Syria tensions
* Shares in Akbank rise
* Bonds flat
(Adds quotes, closing prices)
By Seltem Iyigun
ISTANBUL, Oct 5 The Turkish lira firmed on
Friday, a day after hitting its weakest level since
mid-September following attacks on the Syrian border, while
Akbank shares rose on bullish expectations for the bank's
By 1433 GMT, the lira had firmed to 1.7946 against the
dollar, from 1.7985 late on Thursday.
It had hit 1.8110 on Thursday, its weakest since
mid-September, after Turkish artillery hit targets near the
Syrian border in retaliation for Syrian shelling, which killed
five Turkish civilians on Wednesday.
Investors' anxiety eased after Turkey said Syria had
apologised for the strike and such an incident would not be
"The initial response from the Turkish government looked to
engage the United Nations, which was a comfort for the market.
As regards price action today, emerging currencies have
generally been bullish," said Roderick Nghoto, EMEA FX
strategist at RBS.
"I do not ascribe current lira price action to Turkey
specific news today."
Against its euro-dollar basket, the lira
eased to 2.0700 from 2.0673. Following the incident with Syria,
it hit its weakest since Sept. 18 at 2.0759 on Thursday.
Turkey's main share index closed up 0.7 percent at
67,383 points, in line with a 0.6 percent rise in the emerging
The market was led by banking shares, which rose
"On a weekly basis, shares rose 1.8 percent and outperformed
the emerging markets index. Although parliament has approved
sending soldiers to foreign countries if necessary, investors
viewed that, in the short-term, geopolitical risks are not too
important," said Erdem Kayli, equity analyst at Tekstil Invest,
adding that banking shares had driven the week's gains.
Shares in lender Akbank rose 2.39 percent to 7.72
lira on Friday.
"Expectations for the final quarter financial results of
Akbank are quite positive. For the second half of the year, we
expect the bank to have a return on equity ratio of around 17
percent," said Recep Demir, equity analyst at Garanti
The yield on the two-year benchmark bond
closed at 7.57 percent, down from a previous close of 7.61
percent. It had jumped as high as 7.75 percent on Thursday.
(Writing by Seltem Iyigun; Editing by Robin Pomeroy)