Turkish shares rebound slightly in opening session

By Fatih Erkan Dogan

ANKARA (AA) - The Borsa Istanbul benchmark index rose slightly to open at 76,805.98 points on Wednesday after dipping as much as 1.46 percent in the previous day’s close amid the strengthening U.S. dollar in global markets.

The BIST 100 index rebounded slightly -- 0.25 percent or 187.79 points -- to 76,805.98 points following the sharp loss it suffered during the previous close due to a stronger dollar in global markets and worse than expected Turkey inflation data which showed the economy may be challenged by higher consumer prices in the near term.

The annual rate of inflation rose to 8.53 percent in December from 7 percent in November, Turkish Statistical Institute said on Tuesday, adding that the highest monthly increase was 7.33 percent in alcoholic beverages and tobacco.

The U.S. dollar/Turkish lira exchange rate was around 3.5860 at 10.00 a.m. (0700GMT) on Wednesday, not much far away from Tuesday’s historic high of 3.6050.

On Tuesday, the dollar index declined slightly against other major currencies. But it rebounded again to a near historic high over anticipation about a stronger dollar in the near term.

The dollar index on Tuesday soared to 103.82 points, which was a 14-year high, after a stronger than expected ISM manufacturing index; it later retreated to 103 points. In the early morning hours of Wednesday, it was at 103.19 points.

ISM refers to the Institute of Supply Management, an institute that publishes reports of manufacturing activities.

Analysts expect the sentiment in Turkish markets to be largely driven by macro data published in the U.S. and other global economies as well as domestic political atmosphere focused on the state of emergency and the presidential system debates.