$TKHVY

Benzinga·Apr 1

Turkish Stock Markets Welcome Change: Will Erdoğan Defeat Prompt Economic Reforms?

Turkey’s stock market dipped on Monday while government bond yields jumped, following a resounding defeat for President Recep Tayyip Erdoğan's ruling Justice and Development party (AKP) in this weekend’s local elections. The main opposition Republican People’s party (CHP) scored wins in Turkey’s five biggest cities — Istanbul, capital Anakara, Izmir, Bursa and Antalya — leaving Erdoğan facing his biggest political setback since he came to power as prime minister in 2003. Markets don’t tend to like change, unless change is desperately needed — and with inflation running close to 70%, investors appeared agree with the voters. Equity investors remained upbeat, while the lira currency gained. Bond yields jumped, however, pushing prices lower. The country’s main stock index, the BIST 100, initially dipped 0.5%, then turned 0.7% higher. On the foreign exchange market the lira climbed 1.2% against the dollar. Bond yields jumped, with the benchmark 10-year yield adding 152 basis points to 26.7%. The iShares MSCI Turkey ETF (NYSE:TUR), the only exchange-traded fund (ETF) that offers exclusive exposure to Turkish shares, gained 2.1% in early trade. Full story available on Benzinga.com