Trade thin on Turkish markets on IMF visit, Iraq

Investors were also nervous that the United States could go to war against Turkey’s neighbour Iraq, wreaking havoc on the NATO member’s economy which is shaking off its worst slump since World War Two. Shares on the main Istanbul exchange <.XU100> finished the morning up 1.1 percent at 10,393.73 points, while the lira <IYIX=> traded at 1,663,500 to the dollar, slightly stronger than Tuesday’s 1,666,000 close.
Yields on the busiest December 3, 2003, debt stood at 57.45 percent, barely higher than the previous 57.39 percent.

"It’s a quiet day, volume is not much above 130 trillion lira (around $78 million)," said Emre Balkeser, trader at Alfa Securities. "Investors are staying out because of the threat of war and keeping their money in more liquid, safer places."

Balkeser said markets were awaiting a statement from the IMF’s first deputy managing director Anne Krueger, in Ankara for talks with officials on reform progress needed before the fund will release a $1.6 billion loan instalment, delayed for months.
"Any positive statement could push the market above 10,500 points," Balkeser said.
Krueger is expected to make a statement after winding up her discussions later on Thursday.
Markets are worried the government, which swept to power in a November poll, is slipping on Turkey’s pledges to the IMF on budgetary targets, banking sector reforms and privatisation.
Krueger’s visit comes ahead of a regular IMF review of Turkey’s progress this month. Senior World Banker Johannes Linn is also in Ankara for talks with economic officials.