Turkish shares rose by 0.5 percent in morning trading on Thursday, March 15, but analysts said the slight rally was not a positive reaction to a newly-revealed economic package. The Istanbul stock exchange's national index gained 42 points to close the morning session at 8,193, after having closed at 8,150 points Wednesday on a 3.9-percent slump.
The slight increase was the first rise this week when trading has been marked by uncertainty over the new economic measures announced on Wednesday. Analysts said that rise was the result of investors moving to take advantage of weak prices rather than a sign of optimism over the measures revealed by Economy Minister Kemal Dervis.
"The investors know it is time to buy. This has nothing to do with Dervis' announcements," Tevfik Eraslan, chief economits at Kentbank, told AFP. "The reaction to the measures will be seen not on the stock exchange but on the foreign exchange market," he added.
The package included mainly measures to clean up Turkey's ailing banking system which is regarded as being at the centre of a crisis last month. The liquidity crisis forced the government on February 22 to abandon a pegged exchange rate and float the lira, in breach of a three-year IMF-backed anti-inflation plan in place since December 1999. The overall depreciation of the lira against the dollar since then stood at 32.7 percent on Thursday. —(AFP)
© Agence France Presse 2000
© 2001 Mena Report (www.menareport.com)