ISTANBUL, (Reuters) - Turkish shares closed almost three percent higher on Friday, May 19, as interest and currency rates fell after the approval of $15.7 billion in IMF loans and positive expectations for a planned reshuffle in an emerging market index, brokers said.
Istanbul's main ISE National-100 <.XU100> index closed 2.95 percent higher at 12,738.55 after running flat most of the day. Weekly gains to 8.14 percent.
"It (the late rise) was actually a response to declining interest and currency rates after approval of the IMF loans and the arrival of the first tranche on Friday," said Engin Ertam, asset manager at Bayindir Securities.
Turkey received $3.9 billion from the IMF on Friday as it seeks to rescue the country from a crisis that has wiped 38 percent off the value of the Turkish lira currency.
Interest rates on the Central Bank-brokered spot market stood at 76 percent, down from well over 1,000 percent in the immediate aftermath of the February crisis. The lira, currently at 1,108,000 against the dollar, has climbed from a 1,146,000 close just prior to approval of the IMF deal on Tuesday night.
Brokers said that share index was lifted by a buying spree in several blue-chip companies on hopes of inclusion in key stock indices by Morgan Stanley Capital International (MSCI) after a planned reshuffle.
"Some Turkish stocks may be included in the MSCI index and its transition to free-float indices," said Ertam.
MSCI will announce new constituents and inclusion conditions for its global indices on May 19, based on free-float criteria.
Daily turnover on the exchange fell to 569.9 trillion lira ($514.6 million) despite late advances, from Thursday's 615.08 trillion. Gainers outnumbered decliners 225 to 32, while 44 of the 301 shares traded were unchanged.
All sectors closed in positive territory, led by the conglomerates, which rose 4.55 percent. Sabanci Holding , surging 9.09 percent to 6,000 lira, was the biggest gainer among Turkey's blue-chip companies.
Heavyweight private banks Yapi Kredi Bankasi , up 1.82 percent at 5,600 and Garanti Bankasi , ending 4.55 percent higher at 6,900 were the most active shares after Sabanci Holding.
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