Turkish stocks decline on state sale-plan report

Turkish stocks fell to the lowest level in two weeks after Turkey’s Privatization Administration denied a newspaper report it plans to sell shares in state-run companies. State-run lenders and Turk Telekomunikasyon AS dropped.

The benchmark ISE National 100 stock index lost 423.57, or 0.9 per cent, to 45,337.46 at 11:51 a.m. in Istanbul. No decision has been taken on an asset-sale strategy, the privatization agency said in a written statement to the Istanbul Stock Exchange today.

The agency is planning to sell shares to the public in companies including Turkiye Halk Bankasi AS and Turkiye Vakiflar Bankasi TAO, the Star newspaper reported today, without citing anyone. The agency has no plans to hold public offerings in landline operator Turk Telekomunikasyon and Petkim Petrokimya Holding AS, the newspaper said.

“The fear that the privatization administration might sell the shares is dragging down the state banks and Turk Telekom shares” said Haydar Acun, chief executive officer of Sardis Securities in Istanbul. “In secondary public offerings the price of the stock will be lower than the market price.”

Turk Telekom, the country’s biggest fixed-line phone company, fell 8 kurus, or 1.8 percent, to 4.38 liras, the lowest level in almost three months. Halkbank dropped for the first time in three days, losing 10 kurus, or 1.2 per cent, to 8.15 liras. Vakifbank declined 2 kurus, or 0.6 percent, to 3.16 liras, the lowest in almost three weeks. Petkim shares decreased for a third day, losing 20 kurus, or 2.9 per cent, to 6.65 liras, the lowest in almost two months.

Turkey is seeking means to raise revenue as it discusses a possible loan accord with the International Monetary Fund to narrow the budget deficit and boost growth in the economy.