Turkish banks up on hopes for rate cut, possible credit rating upgrade

Turkiye Is Bankasi AS

02/09/2024 14:27

** Shares in Turkish banks rise on hopes of a possible
interest rate cut after moderate Istanbul retail prices data,
and expectations that Fitch will upgrade Turkey's credit rating
    ** Turkey's main banking index  .XBANK  is up 4.3% to its
highest since early August, boosting the main stock market index
 .XU100 , which is up over 2%
    ** Retail prices in Turkey's largest city Istanbul rose
1.73% month-on-month in August for an annual increase of 61.57%,
the Istanbul Chamber of Commerce (ITO) said on Sunday
    ** ALB Investment's Chief Economist Filiz Eryılmaz says the
ITO data strengthens the likelihood that the country-wide
inflation due on Tuesday may come in below expectations
    ** "If improvement in inflation is observed, the likelihood
of a possible interest rate cut will increase, and the
expectation of a rating upgrade in Fitch's decision to be
announced on Friday has boosted the banking index," Eryılmaz
says
    ** "The sector that will benefit first from an interest rate
cut is banking," Mehmet Baki Atılal, Deputy General Manager of
Research at A1 Yatirim Menkul Degerler says
    ** Turkey's Akbank  AKBNK.IS , İs Bankası  ISCTR.IS  and
Yapı Kredi  YKBNK.IS  rise between 4.2% and 4.8%


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