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Istanbul shares dive

2.9 pc on political worries

ISTANBUL: Istanbul shares dived on Monday amid insufficient cash inflow into a market unnerved by possible threats to Turkey's new centre-right coalition government, brokers said.

"Buyers do not show up because of the political uncertainties. We don't have much to expect from the market," Nadir Erturk from Can Securities said.

The IMKB-100 .ISEClost 2.89 percent or 2,027.73 points to end at 68,042.87, after breaking barriers at 70,000 and then around the critical 69,000 level in the morning session.

Analysts who said the shattering of support at around 69,000 ended a long-term uptrend running since the start of the year, said they now await fresh support at 67,000.

"The index may rebound towards 70,000 tomorrow with some reaction to today's sharp fall. But a downtrend seems more likely in the medium-term," said Seyfullah Esen, analyst at Oki Securities.

The index surged 80 percent from end-December to last Monday's 72,086.84 all-time high close, the eleventh record close this year.

Daily volume rose to 8.28 trillion lira from Friday's 7.57 trillion, mainly on the back of a block deal and a new share offer totalling about 1.5 trillion lira on the wholesale and preliminary markets.

Brokers said market sentiment was sour due to the main opposition Islamist Welfare Party's (RP) attempts to have former premier Tansu Ciller impeached on two allegations of corruption, the first of which will be debated in parliament on April 24.

Prime Minister Mesut Yilmaz has not so far defended his coalition partner and told his Motherland Party deputies to vote with their consciences in the April 24 debate.

In the case of a "yes" vote, a parliamentary inquiry will begin on the allegation, possibly leading to an eventual impeachment.

The RP also applied to the Constitutional Court on Friday for the annulment of a confidence vote won by the coalition by 257-207 on March 12, saying the coalition needed to secure an absolute majority in the 550-seat parliament.

Brokers said the lira's weakening versus the dollar due to a rising dollar/mark in the international markets also helped lure some cash out of the Exchange.

The lira ended at 73,600 per dollar, down from the 73,020 Friday close.

Of the 215 shares traded, losers outnumbered gainers by 176 to 16 and 23 shares were unchanged. The 87-share industrial index .ISEI lost 2.88 percent to 74,312.55 and the 13-share financial index .ISEFdipped by 2.94 percent to 61,709.53.

The most active shares were those of utility Kepez Elektrik, down 1,500 lira at 49,500, and sanitaryware producer Eczacibasi Yapi, up 900 lira at 10,300.-Reuter