ISTANBUL May 12 The Turkish lira and stocks
pushed higher on Monday on the back of gains in major Asian
markets and on expectations of more robust earnings results for
Turkish companies on this last day for listed firms to report
their first quarter earnings.
Traders said the Ukraine crisis was having little impact on
Turkish markets for now, though investors would keep a wary eye
on developments in Turkey's Black Sea neighbour, where
pro-Moscow rebels declared a resounding victory on Sunday in a
referendum on self-rule for eastern Ukraine.
The main stock index was up 0.93 percent at
76,262.56 points in morning trade, outperforming a 0.56 percent
rise in the broader emerging markets index
"(We are seeing) positive trade in equities with
support seen at 75.5k, resistance at 76k," said Sinan Goksen,
head of research at Denizbank.
He said strong buying of Garanti Bank continued
from Friday, adding: "Estimate-beating results from many proxy
stocks are also feeding the broad-based buying appetite."
Many companies including carmaker Tofas and
retailer Migros, are expected to announce their first
quarter results on Monday after the trading session. Turkey's
two biggest companies, Koc and Sabanci,
will also post results.
It has been a positive earnings season so far for Turkish
companies. The biggest banks including Akbank and
Isbank and major industrials such as Tupras
posted results that surprised on the positive side.
Turkey's lira also firmed on Monday, trading at
2.0730 by 0754 GMT, close to its strongest level this year of
2.0670, a level it touched on Friday amid signs that Russia was
trying to avoid a full-blown conflict in Ukraine.
"There are no global or local developments to break the
technical resistance levels. We may observe some profit taking
again today just like on Friday," said an Istanbul-based bank's
"Geopolitical risks and a chance that the central bank will
cut rates are factors that will limit the downside potential in
the lira/dollar rate," the trader added.
The two-year benchmark bond yield rose
slightly to 9.19 percent from last week's close of 9.16.
(Writing by Ece Toksabay; Editing by Gareth Jones)