Turkish clearing house move halts sharp decline in some bank shares

Is Gayrimenkul Yatirim Ortakligi

29/09/2022 14:52

ISTANBUL, Sept 29 (Reuters) - Turkish clearing house
Takasbank took action to provide liquidity to brokerages and
take on some stock as collateral, the market authority said on
Thursday, stabilising shares in Turkish lenders Sekerbank and
TSKB.
    Banking shares on the Borsa Istanbul fell sharply in recent
weeks, after surging more than 150% up to mid-September from the
beginning of the year. The decline was largely due to margin
calls on futures positions.
    The fall in TSKB and Sekerbank shares, which traded limit
down for nine consecutive trading days, continued longer than
the other big banks as investors held leveraged positions.
    A fund manager said the transfer of the shares to the
clearing house has allowed the selling pressure on stocks to
ease by reducing open positions.
    Shares corresponding to 13.05% of the capital of Sekerbank
 SKBNK.IS  and 7.22% of the capital of TSKB  TSKB.IS  were
submitted to Takasbank, a statement sent to the stock exchange
by the central registry agency (MKK) said.
    Traders and analysts have said the sharp falls in banking
stocks earlier in September were due to margin calls on futures
positions.
    Investors in these futures contract have to meet margin
calls by showing cash, shares or other securities equal to the
margin call to keep their trading positions. Otherwise
brokerages meet them by selling the shares.
    As a last resort clearing house Takasbank's guarantee fund
is used.
    Ankara might move to limit futures contracts on shares of
small or medium-sized companies with low trading volume
vulnerable to price manipulation, analysts said last week. 
    President Tayyip Erdogan said on Wednesday that authorities
were looking into the issue and that an announcement would be
made soon.
 (Reporting by Can Sezer
Writing by Ezgi Erkoyun. Editing by Jane Merriman)
 ((ezgi.erkoyun@thomsonreuters.com; +90-212-350 7051; Reuters
Messaging: ezgi.erkoyun.thomsonreuters.com@reuters.net;))