Turkish banks fall as higher-than-expected CPI data hits hopes for rate cut

Turkiye Is Bankasi AS

04/11/2024 14:03

** Shares in Turkish banks slide as expectations for a
potential interest rate cut wane after higher-than-expected
inflation data
    ** Turkey's main banking index  .XBANK  is down 4.3% to its
lowest since early April, while Turkish equities  .XU100  fall
2.38%
    ** Turkish inflation remained loftier than expected in
October, dipping only to 48.58% annually and to 2.88% monthly,
data showed on Monday, underscoring the central bank's slow and
difficult battle against years of soaring prices
    ** "The banking index is facing a sell-off due to the
postponement of interest rate cuts. Additionally, significant
pressure on net profitability in the banking sector during the
third-quarter earnings period is further affecting the
situation," Yakup Toktamıs from brokerage Trive Yatirim says 
    ** Yusuf Dogan, Head of Global Markets Research at Info
Yatırım, also notes the CPI data may complicate potential
interest rate cuts
    ** Turkey's Akbank  AKBNK.IS , İs Bankası  ISCTR.IS  and
Yapı Kredi  YKBNK.IS  drop between 3.7% and 5.7%

 (Reporting by Canan Sevgili)
 ((canan.sevgili@thomsonreuters.com))