Turkish leaders confident despite stock, currency falls

ANKARA

Turkish shares tumbled Thursday amid declines in the banking and sport sectors as the Turkish currency dropped to over three lira against the U.S. dollar for first time since August.

Borsa Istanbul's BIST 100, the country’s benchmark index, closed down 0.77 percent (600.97 points) lower at 77,076.80.

On the fourth trading day of the week, the banking sector index lost about 1.70 percent; the service and industry sector indices were also down 0.59 percent and 0.16 percent respectively.

However, the information technology sector ended 2.11 percent higher for the day, with a total trading volume of 3.8 billion Turkish liras ($1.26 billion).

Borsa Istanbul's most actively traded stocks belonged to national flag-carrier Turkish Airlines, state lender Halkbank plus private lenders Akbank, Garanti Bank and energy giant Tupras.

The largest winner was Datagate (DGATE) -- a computer and computer peripherals distributor -- which saw an increase of 10.70 percent.

Biggest losers included Besiktas Futbol Yat. (BJKAS), an Istanbul soccer club which lost 7.35 percent or 0.35 points to trade at 4.41 in late trading.

Increasing stocks outnumbered rising ones by 224 to 117 and 158 ended unchanged on the stock exchange.

Gold price down

The Borsa Istanbul Gold Exchange index lost 0.65 percent in value on Thursday compared to Wednesday's closing, with gold trading at 127,500 Turkish liras per kilogram.

Turkey's currency fell against the U.S. dollar, standing at over three liras compared to Wednesday's close of 2.9805.

The lira dropped to over three against dollar for first time since August after Turkey’s National Security Council advised the government to extend by three months a state of emergency declared after the July 15 coup attempt.

On Thursday, President Recep Erdogan said that far from being in decline, Turkey’s economy had been growing for the last 27 quarters.

"Turkey continues to grow and develop. The credit agencies make evaluations under someone's orders. These agencies give a 'stable' outlook to a country like Turkey, which is standing on its own two feet. This time they even reduced it," Erdogan told a gathering of local officials (mukhtars) in the capital Ankara.

Erdogan’s comments follow the decision last week by ratings agency Moody's to lower Turkey's credit rating from Baa3 to Ba1.

"Put some coins into their [credit agencies’] pockets and get the rating what you want. We know where they take the orders from," said the president.

He added: "Cut the rating as much as you want. Turkey will continue to develop.”

Erdogan also said that the country's ongoing state of emergency was only aimed to easing Turkey's fight against terrorist groups such as FETO and the PKK.

"The three-month state of emergency is only for effective counter-terrorism," Erdogan said.

Deputy Prime Minister Mehmet Simsek said on Thursday Turkey would push to raise its credit rate again following Moody’s downgrade.

Speaking at Anadolu Agency's Editors' Desk in Ankara, Simsek -- who has responsibility for Turkey’s economy -- said Moody’s rate cut is "not the end of the world".

"Moody's downgrade rating [is a] serious matter, [but] it is not the end of the world because investors look at Moody's, S&P and Fitch" – three ratings agencies, not just one – Simsek said.

"We will make extra efforts to raise the credit rating again," he added.