Turkish stocks drop slightly

Published December 12th, 2000 - 02:00 GMT

Turkish shares eased 0.5 percent Monday, December 11, as traders brushed aside a message of support from foreign banks and waited instead for concrete action. 

 

The Istanbul market's index fell 46 points to close at 9,754. 

The exchange had soared last week after the announcement of a $10 billion rescue package from the International Monetary Fund to alleviate a severe liquidity sqeeze. 

 

In Frankfurt, representatives of 30 major international banks said they would maintain support for Turkey at a meeting Monday with Turkish authorities, organised by Deutsche Bank. 

 

But Turkish observers said pledges of support would not have a significant effect on the markets until foreign currency flowed into the country. 

 

"The markets are expecting not pledges but concrete action," Bank Express dealer Ziya Anildi told AFP. 

"We can talk of improvement if foreigners put foreign currency into the central bank and start buying shares," he said, adding that this would also help pull down interest rates. 

 

The average overnight rate at the money markets, meanwhile, stood at 120 percent, still high but sharply down from the levels of 1,700 percent reached at the peak of the crisis. 

 

For the past two weeks, Turkey has suffered a severe liquidity crisis, leading to emergency injections of some $6 billion by the central bank, record interest rates and a slump on the stock exchange.— (AFP)  

 

© Agence France Presse 2000. 

© 2000 Mena Report (www.menareport.com)

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