Turkish stocks boosted by oil price slump, Turkish Airlines at record

Following last week’s OPEC decision not to cut production, Brent crude oil fell more than $2 a barrel to a five-year low below $68. (File photo: Reuters)

Turkish stocks rose on Monday as oil prices fell to a five-year low on expectations that cheaper energy imports would ease Turkey's mammoth current account deficit, and Turkish Airlines hit a record high.

Turkish assets have benefited from oil prices falling almost 30 percent since the middle of the year. Turkey imports almost all of its energy which is the largest contributing factor to its biggest economic weakness - a large current account deficit.

Following last week’s OPEC decision not to cut production, Brent crude oil fell more than $2 a barrel to a five-year low below $68 and Turkey's main stock index was up 0.58 percent at 86,667.72 points by 1109 GMT. It outperformed the main emerging markets index which fell 1.37 percent, with Russia, a major oil exporter, leading the fall.

Shares in flag carrier Turkish Airlines pared gains to 2.2 percent, having hit an all-time high of 9.58 lira.

Data from the Turkish Exporters' Assembly (TIM), showed exports fell 6.4 percent year-on-year in November to $12.88 billion. TIM releases its figures almost a month before the state statistics office, and the two sets of data usually match.

The lira slipped to 2.2232 against the dollar by from 2.2165 late on Friday.

The benchmark 10-year government bond yield fell to 7.63 percent from Friday's spot close of 7.75 percent.

 

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Last Update: 13:06 KSA 16:06 - GMT 13:06
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