October 30, 2013 / 9:02 AM / 6 years ago

Turkish stocks at 5-week high as U.S. stimulus seen holding

ISTANBUL, Oct 30 (Reuters) - Turkey’s main stock index reached its highest level in almost six weeks on Wednesday as markets expected no change in the U.S. Federal Reserve’s stimulus policy and ahead of a slew of third-quarter results due after the close.

The Fed’s policy arm, the Federal Open Market Committee, concludes a two-day policy meeting on Wednesday with a decision on its policy stance due at 1800 GMT.

Investors expected the United States to push on with its $85 billion monthly bond buying programme into next year, preferring to see out the impact of October’s budget impasse and government shutdown before reducing the stimulus.

This has given support to emerging markets which benefited from an influx of cheap money from the stimulus. Turkey is particularly vulnerable to a reduction in the asset purchases because of its large current account deficit.

The main Istanbul share index was up 0.67 percent at 80,102.06 points by 0814 GMT, slightly outperforming the broader emerging markets index, which rose 0.5 percent.

Halkbank, real estate firm Emlak GYO and Ford Otosan, a car manufacturer co-owned by Ford Motor Company and Koc Holding, were due to release their third-quarter results after market close.

Increased funding costs and a mismatch in the banking sector between maturity terms for assets and liabilities - where deposit maturities tend to be shorter than loan maturities - have hit bank profits.

But Halkbank was expected to show a smaller fall in net interest income compared to other Turkish banks.

The lira was broadly flat against the dollar to 1.9920 compared with 1.9924 late on Tuesday as the dollar reached its strongest level in the week.

Analysts are looking ahead to Thursday and the release of the central bank’s quarterly inflation report and September’s foreign trade data which could show a further deterioration of the trade balance.

The 10-year benchmark bond yield was flat at 8.6 percent from Tuesday’s early close. (Reporting by Dasha Afanasieva; editing by Mike Collett-White)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below