Turkish stocks, lira open lower amid military operation

By Bahattin Gonultas

ANKARA (AA) - Turkish stocks opened sharply lower Wednesday after the Turkish Armed Forces hit targets in northern Syria as part of anti-Daesh operations early Wednesday.

The Borsa Istanbul’s BIST-100 share index lost 1,041.71 points (1.35 percent) to 76,290.90 at the opening of Wednesday's session, with the banking and holding sectors down 1.72 percent and 1.33 percent, respectively.

On Wednesday, the Turkish lira began trading at over 2.96 against the U.S. dollar, down from 2.9375 at Tuesday’s close.

Tension appears to be continuing in the Syrian region, as the Turkish Armed Forces and air forces from the U.S.-led international coalition reportedly launched an operation against Daesh in the Syrian city of Jarabulus on Wednesday.

"With the expectation of further hawkish comments from Fed Chair [Janet] Yellen’s speech on Friday, and increasing geopolitical tension, we expect the BIST to open on a negative note today," Istanbul-based Seker Investment said in a client note on Wednesday.

The early morning operation was aimed at clearing terrorist groups from the Turkish border region, tightening border security, and supporting Syria’s territorial integrity, said security sources, speaking on condition of anonymity due to restrictions on speaking with the media.

The operation is in line with the country’s right to self-defense borne out of international treaties and a mandate given to the Armed Forces by the Turkish parliament in 2014 and extended for another year in September 2015.