Oct. 5 (Bloomberg) -- Turkish stocks rebounded from the lowest level in more than a week after the central bank cut foreign-currency reserve requirements for lenders.
The benchmark ISE National 100 Index surged 1.5 percent to 58,084.55 by 12:05 p.m. in Istanbul. Banks led the advance, with the gauge of Turkish lenders rallying 2.2 percent.
The central bank earlier today cut reserve requirements on foreign-currency deposits by as much as 250 basis points, saying it would add $1.3 billion to the banking system. The bank is today offering $1.35 billion at a currency auction, the most since it started the daily sales on Aug. 5. The sale may shore up the lira, which depreciated 13 percent in the third quarter and reached a record-low 1.9096 per dollar yesterday.
Stocks “rebounded from yesterday’s selloff, supported by the central bank’s foreign-currency reserve-rate requirement cut,” Funda Afacan, an analyst at BGC Partners Inc. in Istanbul, said by phone. The currency auction is also supporting the market, she said.
Turkiye Garanti Bankasi AS, the largest lender by market value, gained 2.1 percent to 6.90 liras. Turkiye Halk Bankasi AS, a state-run bank, recovered 2.5 percent of its 6.5 percent drop yesterday, trading at 12.45 liras, and Akbank TAS, the lender part-owned by Citigroup Inc., rose 2.4 percent to 6.92 liras, paring its 6.1 percent loss yesterday.
The banking index had dropped 5.2 percent yesterday on concern the European debt crisis would affect the continent’s banking system.
--Editors: Ana Monteiro, Tim Farrand
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