Turkish Stocks Slide to Five-Week Low on Fitch After Erdogan Win - Bloomberg

Turkish Stocks Slide to Five-Week Low on Fitch After Erdogan Win - Bloomberg:



"Turkish stocks fell to a five-week low as Fitch Ratings said the election of Prime Minister Recep Tayyip Erdogan as president will do little to improve the country’s credit profile. The lira weakened while bonds climbed.



The benchmark Borsa Istanbul 100 Index dropped 2.4 percent to its lowest closing level since July 2. The lira declined against all of its 23 emerging-market counterparts. Yields on two-year lira notes fell two basis points to 9.34 percent. 




Political risk in Turkey is set to remain a credit weakness that may lead to a negative rating action, Fitch said in a statement today. Erdogan, who won enough votes to avoid a run-off in Turkey’s first direct presidential election, will have to step down as leader of the Justice and Development Party, or AKP, to assume office Aug. 28."



'via Blog this'