GeriGündem Turkish assests decline sharply due to hedge funds sell off on Friday
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Turkish assests decline sharply due to hedge funds sell off on Friday

Turkish assests decline sharply due to hedge funds sell off on Friday
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Turkish stocks declined more than 6 percent and the lira lost more than one percent against the dollar on Friday as high leveraged hedge funds continued to sell in emerging markets and recession fears continued. The yield also rose close to 22 percent. (UPDATED)

The Turkish lira traded at 1.52 levels, a nearly 1 percent loss, despite rising more than 2 percent at the beginning of the trading day on the positive sentiment shown by the rebound on Wall Street and Asian markets on Thursday that helped to calm recent panic over the financial crisis.


The benchmark Istanbul Stock Exchange index also increased slightly at the start of the morning session with more than a 1 percent rise but fell by 6.27 percent at the end of the trading. Turkish stocks also lost 6.26 percent on Thursday.
The yield on the benchmark June 23, 2010, which fell below 21 percent, rose close to the 22 percent level at the end of the trading day. 


"Markets priced on the affects of the financial crisis and now continue with recession pricing," Inan Demir, an analyst at Finansbank told HotNewsTurkey. He also added that the hedge fund sell-off was influential on the markets current situation.


Worries about the worsening health of the world economy have continued to dampen the mood despite moves by world powers to pump billions of dollars into shaky markets and banks teetering on the brink of collapse.


"Assets' prices are under pressure since hedge funds are facing problems following a series of bank failures," Ozgur Yurtdasseven, research director at Istanbul based Merkez brokerage said.


Prices could also rise quickly from these levels when the markets start to normalize after the atmosphere of panic ends, he added.


Share prices fell sharply in early Wall Street deals on a further downturn in the U.S. housing market while European equities gained ground in volatile trade despite concerns about the global economy.


Frankfurt, London and Paris won about 1-2 percent in late afternoon trade after briefly sinking into the red as markets were haunted by fears of a worldwide economic recession.


Hong Kong share prices fell 4.4 percent on Friday, tumbling in late trade as investor confidence took a knock, despite a 2.78-percent jump in Tokyo.


Wall Street shares fell at Friday's opening as a weak report on U.S. housing starts prompted profit taking a day after a powerful rally.


New York's Dow Jones Industrial Average fell 2.48 percent in the first exchanges, one day after winning 4.68 percent.


Market action came as a report showed construction starts on new U.S. homes slumped an additional 6.3 percent in September to the lowest level since the recession in 1991.


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