Turkish stocks and bonds firmed on Wednesday after inflation last month rose slightly more than expected.
Consumer prices rose 1.85 percent month-on-month in January for an annual increase of 6.3 percent, the Turkish Statistics Institute said. A Reuters poll had forecast a 1.8 percent rise.
‘Inflation had an impact but it’s not bad news. It’s a sign of growth,’ said Emre Balkeser, trader at Finans Invest. ‘I don’t see a problem, and a lot of investors have priced in inflation for the first half of the year.’
Turkey’s gross domestic product shrank 10.5 percent in the first half of the year and 3.3 percent in the third quarter. The government has said it expects 2009 output to fall 6 percent.
The central bank slashed the benchmark interest rate by a total 10.25 percentage points in the 13 months to November to stimulate growth, and the government now sees the economy expanding 3.5 percent in 2010.
The busiest Nov. 16, 2011, bond yield fell to 8.92 percent from a previous close of 9.06 percent.
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The benchmark ISE National 100 rose 0.23 percent to 55,272.74 at 0843 GMT.
‘The top now is 56,000. When we get close, the market sees some selling. We had a pretty decent run in the last few months and Turkey is among the better performers,’ Balkeser said.
The Istanbul index has climbed 22 percent since December.
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