ISTANBUL, Nov 13 (Reuters) - Turkish stocks dipped on Friday as expectations on banks' profits worsened for the coming months and investors digested companies' third-quarter financial results.
The main share index fell 0.8 percent to 48,356. Banking shares, which account for about 40 percent of the index, fell 1.12 percent.
The lira was nearly flat at 1.48 against the dollar compared to the previous day's 1.4780, and the yield on the Aug 3, 2011, benchmark bond was unchanged at 8.69.
'Positive expectations for the coming period have lessened. No positive expectations have been left for the banks' balance sheets for the coming quarter and the following quarters,' said Cem Kaya from Ata Investment Securities.
Investors believe the Central Bank approached the end of its rate cutting cycle and this lowers the lure of the stock market's motor shares, which are the banks, Kaya said.
The Turkish Central Bank cut interest rates to its record low at 6.75 percent last month to stimulate the economy and curtail an estimated contraction of 6 percent this year.
'The rising trend that started in March ended and now we are waiting for a healthy correction. For that reason, I think it is risky to buy shares as long as the current trend continues,' Kaya said.
Isbank, Turkey's biggest publicly traded bank, fell 4.84 percent to 5.90 lira. It posted lower-than-expected third-quarter net profit of 433 million late on Thursday as lending continued to decline.
Vakifbank rose 1.12 percent to 3.62 lira after it said late on Thursday its net income more than tripled to 345.3 million lira.
Total profits at Turkish banks this year are expected to jump 50 percent to 20 billion lira ($13.5 billion), the regulator said on Thursday. Banks this year have benefitted from low funding costs as the central bank slashed rates by 1,000 bps since November 2008 to stimulate the economy.
Dogan Yayin Holding, Turkey's biggest media company which is embroiled in a tax dispute with the government, jumped 7.81 percent to 1.38 lira. Dogan Yayin's chief financial officer, Soner Gedik, said he was 'very optimistic' about talks aimed at reaching a settlement on the tax dispute.
Petrol Ofisi, the country's biggest fuel retailer, perked up 2.44 percent to 6.30 lira. It said on Thursday talks were continuing between its parent companies, Dogan Holding and Austria's OMV, on a share sale that would give the latter control of Petrol Ofisi.
Flag carrier Turkish Airlines rose 0.85 percent after Chief Executive Temel Kotil said he saw the company's sales in 2009 slightly below a target of $5 billion due to a fall in demand in domestic flights.
He also said in an interview with Reuters that the company expected the number of passengers in 2009 to be slightly below a target of 26.8 million.
(Reporting by Selcuk Gokoluk; Writing by Ayla Jean Yackley; Editing by Toby Chopra and Andy Bruce) Keywords: MARKETS TURKEY/ (selcuk.gokoluk@reuters.com; +90 312 292 7012; Reuters Messaging: selcuk.gokoluk.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The main share index fell 0.8 percent to 48,356. Banking shares, which account for about 40 percent of the index, fell 1.12 percent.
The lira was nearly flat at 1.48 against the dollar compared to the previous day's 1.4780, and the yield on the Aug 3, 2011, benchmark bond was unchanged at 8.69.
'Positive expectations for the coming period have lessened. No positive expectations have been left for the banks' balance sheets for the coming quarter and the following quarters,' said Cem Kaya from Ata Investment Securities.
Investors believe the Central Bank approached the end of its rate cutting cycle and this lowers the lure of the stock market's motor shares, which are the banks, Kaya said.
The Turkish Central Bank cut interest rates to its record low at 6.75 percent last month to stimulate the economy and curtail an estimated contraction of 6 percent this year.
'The rising trend that started in March ended and now we are waiting for a healthy correction. For that reason, I think it is risky to buy shares as long as the current trend continues,' Kaya said.
Isbank, Turkey's biggest publicly traded bank, fell 4.84 percent to 5.90 lira. It posted lower-than-expected third-quarter net profit of 433 million late on Thursday as lending continued to decline.
Vakifbank rose 1.12 percent to 3.62 lira after it said late on Thursday its net income more than tripled to 345.3 million lira.
Total profits at Turkish banks this year are expected to jump 50 percent to 20 billion lira ($13.5 billion), the regulator said on Thursday. Banks this year have benefitted from low funding costs as the central bank slashed rates by 1,000 bps since November 2008 to stimulate the economy.
Dogan Yayin Holding, Turkey's biggest media company which is embroiled in a tax dispute with the government, jumped 7.81 percent to 1.38 lira. Dogan Yayin's chief financial officer, Soner Gedik, said he was 'very optimistic' about talks aimed at reaching a settlement on the tax dispute.
Petrol Ofisi, the country's biggest fuel retailer, perked up 2.44 percent to 6.30 lira. It said on Thursday talks were continuing between its parent companies, Dogan Holding and Austria's OMV, on a share sale that would give the latter control of Petrol Ofisi.
Flag carrier Turkish Airlines rose 0.85 percent after Chief Executive Temel Kotil said he saw the company's sales in 2009 slightly below a target of $5 billion due to a fall in demand in domestic flights.
He also said in an interview with Reuters that the company expected the number of passengers in 2009 to be slightly below a target of 26.8 million.
(Reporting by Selcuk Gokoluk; Writing by Ayla Jean Yackley; Editing by Toby Chopra and Andy Bruce) Keywords: MARKETS TURKEY/ (selcuk.gokoluk@reuters.com; +90 312 292 7012; Reuters Messaging: selcuk.gokoluk.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.