Turkish shares tracked global stocks higher on Friday and were underpinned by bullish domestic data while the lira and bonds were steady in cautious trade as investor attention began to turn to next week's central bank meeting.
Istanbul's main share index was up 0.6 percent at 52,205 points, extending gains after rising 1.1 percent on Thursday but narrowly underperforming the MSCI emerging markets index, which was 1 percent higher. "Sentiment has improved slightly in world equity markets compared to the beginning of the week. We expect high volatility to continue. The upside is limited," said Tera Brokers.
Upbeat US data and corporate results were providing support globally while domestically, a rise in Turkish consumer confidence added to recent strong economic data. Shares in airports developer and operator TAV Havalimanlari Holding rose 2.6 percent after a newspaper report said six groups were interested in bidding for major stakes in the company, which are being sold by two shareholders.
The lira stood at 1.8775 versus the dollar by 1247 GMT, virtually unchanged from 1.8773 on Thursday afternoon. It has weakened 18 percent against the US currency this year. The central bank sold $150 million in a forex-selling auction on Friday, with bids at $531 million. Against a euro-dollar basket the lira traded at 2.1654/61.
The yield on Turkey's new benchmark bond maturing on December 4, 2013 dipped slightly to 10.28 percent from 10.29 percent a day earlier. Attention was turning to next Thursday's monetary policy committee meeting, when the central bank is expected to keep key rates on hold.
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