Turkish stocks close higher after rate hike

By Bahattin Gonultas

ANKARA (AA) - The Turkish stock index finished higher Thursday after Turkey’s Central Bank raised its late liquidity window rate by 0.50 basis points following a U.S. Federal Reserve hike.

Turkey's benchmark stock index, the BIST 100, closed the day up 1.40 percent to reach 109,666.44 points.

The banking and holding sector indices climbed 2 percent and 1.30 percent, respectively.

Among all sectors, the transportation sector index was the top performer -- up 5.48 percent -- while chemical, plastic and petrol sector index suffered the biggest drop, 0.71 percent.

The top five most-traded stocks were state lender Halkbank, national flag carrier Turkish Airlines, private lender Garanti, iron and steel producer Karabuk Kardemir, and the country's sole oil refiner Tupras.

Shares of national flag carrier Turkish Airlines, performed the best, up 5.57 percent, while Stocks of Tupras suffered the most, falling 2.36 percent.

On Thursday, Turkey’s Central Bank raised its late liquidity window rate by 0.50 basis points on Thursday after a U.S. Federal Reserve hike, but left its main policy rate on hold.

The bank raised the late liquidity window rate to 12.75 percent from 12.25 percent, less than the 100-basis-point hike which had been predicted by 20 economists polled by Anadolu Agency.

However, it left its overnight lending rate at 9.25 percent and its benchmark one-week repo rate at 8 percent unchanged.

The U.S. dollar/Turkish lira exchange rate rose to over 3.88 as of 7 p.m. local time (1600GMT) Thursday, up from 3.8150 at the day's opening.

The euro/lira exchange rate also increased to 4.5770 by market close, up from Thursday's open at 4.5170.

The BIST Gold Exchange index rose 1.13 percent in value, while the price of gold per kilogram increased to 157,140 Turkish liras (around $40,469) as of 4.30 p.m. local time (1330GMT), compared with Wednesday's closing price.

As of 7.15 p.m. local time (1615GMT) Thursday, the price of Brent oil was $63.01 per barrel, up from $62.44 at the previous close.