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Turkish assets rise, focus on company results and central bank
July 21, 2014 / 10:02 AM / 3 years ago

Turkish assets rise, focus on company results and central bank

ISTANBUL, July 21 (Reuters) - Turkish markets rose on Monday as investors shrugged off escalating geopolitical risks and focused their attention on second-quarter corporate results, with Turk Telekom up on strong profit growth.

Shares in the telecoms firm climbed 0.9 percent to 6.33 lira after reporting a 185 percent year-on-year surge in net profit in the second quarter.

Markets also looked ahead to the central bank’s quarterly inflation report, due on Thursday. The central bank, which cut its one-week report rate by 50 basis points to 8.25 percent last week, was expected to revise its end-year inflation forecast.

“As they have mentioned the upside risks on food inflation last week in the MPC statement, they are likely to revise the year-end inflation forecast higher,” said Erkin Isik, strategist at TEB BNP Paribas.

In its last report, the central bank said it expected inflation to decline to 7.6 percent by the end of this year.

While rising month-on-month, June consumer price inflation fell to 9.16 percent year-on-year from 9.66 percent in May, according to the Turkish Statistics Institute data.

The Turkish lira firmed to 2.1185 against the dollar by 0952 GMT from 2.1366 late on Friday.

The main Istanbul share index traded 0.6 percent higher at 82,799.82 points, outpacing the broader emerging markets index, which was flat.

Among shares in focus, petrochemicals maker Petkim traded 1.9 percent higher at 3.76 lira on a preliminary agreement Goldman Sachs signed with Socar’s Turkey unit to buy a 30 percent stake in the country’s largest integrated port for $250 million. [ID:nL6N0PW1JX}

The benchmark 10-year government bond yield fell to 8.88 percent from 8.91 percent at Friday’s close. (Writing by Ece Toksabay; Editing by Daren Butler)

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