An upgrade by ratings agency Moodys' boosted the Turkish lira and bonds on Friday although stocks slipped after industrial production data proved weaker than expected. Moody's upgraded Turkey by one notch to Ba2/stable from Ba3/positive, citing growing confidence in Turkey's ability to absorb shocks, regroup during recession, and access funding.
The lira traded at 1.4675 to the dollar on the interbank market, after a close of 1.4785 on Thursday. The yield on the Turkish benchmark bond fell to 8.55 percent from a previous close of 8.85 percent after the ratings move.
Turkish stocks briefly rallied as much as 1.25 percent on news of the upgrade but then slipped after data showed industrial production in November posted a surprise fall of 2.2 percent on the year. "Industrial production data may have pushed stocks back into negative territory, but a ratings upgrade had also already been priced-in," said analyst Ayse Colak at Tera Brokers.
On Thursday the stock index, which is trading at around two-year highs after nearly doubling last year, rose 0.78 percent on talk of a ratings upgrade by Standard & Poors.
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