Turkish banks lead shares higher on strong Q3 results

ISTANBUL, Nov 11 (Reuters) - Stronger banks lifted the Turkish share market on Wednesday as investors weighed up strong third-quarter corporate results, while a positive trend in global risk appetite underpinned sentiment. The main stock exchange index rose 1.56 percent to 48,884 points by 0904 GMT, outperforming the MSCI index of emerging markets which was 0.94 percent higher. The gains were driven by the banking index which rose 2.77 percent. Yapi Kredi Bank, up 1.92 percent, was scheduled to release its third-quarter figures on Wednesday, along with refiner Tupras, brewer Anadolu Efes and Turkish Airlines. "We think the positive trend in global risk appetite will continue but today there will be a more balanced movement," said one banker. Dealers said the trend in local currency and bond markets was being driven by moves in the dollar/euro exchange rate. The lira firmed to 1.4710 against the dollar on the interbank market from 1.4730 on Tuesday. The yield on the Aug. 3, 2011 benchmark bond fell slightly to 8.58 percent from 8.60 percent a day earlier. Yields had dropped to below 8 percent on expectations of further, though more moderate, rate cuts. However fears over high state borrowing have since curbed investor appetite. The Turkish Central Bank cut its benchmark interest rate to a record low last month of 6.75 percent. Dealers said a rise in capacity utilisation to 71.8 percent in October from 70.1 percent a month earlier had no market impact. Among shares in focus, gold miner Koza rose 4.9 percent to 5.18 lira and was the most actively traded share after it announced a net profit of 15.2 million lira in the third quarter, compared with a loss of 2.9 million a year earlier. Refiner Tupras rose 1.83 percent to 27.75 lira ahead of the release of its results. It announced on Wednesday as expected that it would not distribute an interim dividend from the nine-month net income. (Writing by Daren Butler; Editing by Victoria Main) Keywords: MARKETS TURKEY/ Keywords: MARKETS TURKEY/ ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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