ISTANBUL Aug 7 Doubts about the future of Bank
Asya dragged down Turkish stocks on Thursday,
highlighting rifts in the government's economic team. Conflict
in Iraq and Ukraine also unsettled investors.
Islamic lender Bank Asya ended down more than 5.3 percent
after the authorities cancelled its tax collection and social
security payment deals. That was seen as a step towards winding
down the lender, which was founded by sympathisers of Islamic
cleric Fethullah Gulen, an ally-turned foe of Prime Minister
The main Istanbul share index fell 0.74 percent to
78,843 points, underperforming the broader emerging markets
index which was down 0.46 percent.
Persistent tensions in Ukraine and investor anxiety over the
impact of counter-sanctions imposed by Russia continued to drive
a selloff in emerging markets.
In Iraq, also Turkey's neighbour, Islamic State militants
extended their gains in the north. Thousands fled in fear of
persecution by Sunni militants seeking to establish an Islamic
The lira slipped to 2.1638 against the dollar by
1453 GMT, from 2.1617 late on Wednesday.
The benchmark 10-year government bond yield
fell to 9.46 percent from 9.55 percent at Wednesday's close.
(Reporting by Dasha Afanasieva; Editing by Larry King)