|Published : 18 Apr 2017, 17:15:20 | Updated : 18 Apr 2017, 17:25:03|
Turkey stocks, lira rally after Erdogan win
ANKARA: Turkish stocks and the lira strengthened on Monday after President Recep Tayyip Erdogan won a referendum on expanding his powers, with investors hoping the outcome would bring stability, according to Saudi Gazette.
On Sunday, the ‘Yes’ side won 51.41 per cent of the vote compared with 48.59 for the ‘No’, near full results showed.
The lira was trading at 3.67 against the US dollar at 0800 GMT, its value jumping by 1.6 per cent.
Since the start of this year, the lira has lost four per cent of its value against the greenback because of political instability making it the worst-performing emerging market currency in 2017.
Many investors had been betting on a ‘Yes’ vote as the best way to restore economic and political stability.
The Istanbul stock exchange also rallied after the result, up by 0.74 per cent immediately after market opened. By 0800 GMT, stocks had risen by 0.6 per cent.
“The market is likely to cheer the continuation of stability, declining chances of an early election and the tight call on the referendum that may contain any market-unfriendly moves,” Ozgur Altug, chief economist at Istanbul-based BGC Partners, said.
But Altug said that despite the welcome from the market in the near term, “we do not expect a major breakout”.
(compiled by Rafiqul Islam)