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Turkish stocks regain footing after tumble on corruption probe
December 18, 2013 / 4:52 PM / 4 years ago

Turkish stocks regain footing after tumble on corruption probe

ISTANBUL, Dec 18 (Reuters) - Turkish stocks made up a little of the previous day’s sharp losses on Wednesday, catching up with their global peers, while bonds and the lira continued to falter.

Stocks had been hammered by news of a widespread corruption probe which saw more than 50 people arrested including three ministers’ sons and prominent businessmen, and heightened political tensions ahead of elections next year.

The yield on the 10-year benchmark bond rose to 9.74 percent from 9.63 percent.

The lira was weaker at 2.0480 against the dollar by 1609 GMT compared to 2.0407 late on Tuesday.

Having fallen more than 5 percent on Tuesday, the main stock index rose 0.66 percent to 71,417 points, outperforming a 0.23 percent rise in the wider emerging markets index .

Turkish shares crept up along with world shares, which were boosted by solid economic data from the United States, Germany and the United Kingdom.

Global investor attention was focused on the U.S. Federal Reserve, which is due to conclude its two-day meeting later on Wednesday. Opinion is split on whether it will vote this week to begin reducing the $85 billion monthly stimulus that has helped support emerging market assets or wait until January or March.

Turkey has depended on cheap foreign capital to finance its large current account deficit, and it is feared that this could dry up when the United States begins trimming its stimulus. (Reporting by Dasha Afanasieva; Editing by Hugh Lawson)

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