960422

Equities slump

in Istanbul

ISTANBUL: Istanbul shares dived 3.33 percent on Monday as political uncertainties and an upcoming 4 1/2 day religious holiday continued to hinder cash inflow, brokers said.

The IMKB-100 closed down 2,208.70 points at 64,151.48 after last week's 5.3 percent dive mainly due to political concerns. Daily trade volume shrank to 4.87 trillion lira from Friday's 6.05 trillion on cash shortage.

"The market is basically influenced by political developments. Stronger alternative markets also divert cash away from the bourse. The market may settle at these levels (ahead of the holiday)," Kadri Isik from Halkbank said.

All Turkish markets will be closed tomorrow (Tuesday) due to a national holiday and will again shut down for a 4-1/2 day religious holiday on Friday and reopen on May 2, next Thursday.

The market awaits a parliamentary debate on Wednesday, when one of the main opposition Islamist Welfare Party's (RP) two allegations of corruption against former premier and True Path Party leader Tansu Ciller will be debated.

Investors are unnerved by potential threats to the coalition as Prime Minister Mesut Yilmaz has so far not defended his partner and told his deputies to vote with their consciences.

Some brokers said the index could ease towards the 60,000 level in the week if cash outflow continued ahead of the holiday amid strong alternatives.

The lira dropped to 74,200 versus the dollar from Friday's 73,750 close due to firmer dollar/mark parity.

The Treasury sold 126.4 trillion lira worth of t-bills at today's auction, up from 110.6 trillion in the previous auction. The maximum yield eased to 124.21 percent from previous 125.99.

The 87-share industrial index .ISEIplunged 3.09 percent to 70,612.85 and the 13-share financial index .ISEFdipped 4.08 percent to 56,757.48. Of the 218 shares traded, losers sharply outdid gainers by 181 to 10 while 27 shares were unchanged.

The most active shares were those of utility Kepez Elektrik which gained 500 to 50,000.-Reuter