Azernews.Az

By Bloomberg

Turkish stock valuations at the lowest level in more than a year attracted investors, sending the benchmark gauge up the most in almost three weeks.

The Borsa Istanbul 100 Index advanced 1.7 percent to 78,695.51 at 2:17 p.m. in Istanbul, the biggest jump since July 9. Turkiye Garanti Bankasi AS, the nation’s largest-listed lender by market capitalization, climbed 1.9 percent, and Turkcell Iletisim AS, the telecommunications operator, added 3.8 percent. The benchmark gauge traded at 9 times estimated 12- month earnings on Monday, the lowest multiple since March 2014.

While stocks rebounded from a four-month low, the country risks being drawn into regional conflicts including in Syria and Iraq as politicians struggle to form a coalition government and avert fresh elections. Turkey’s economic growth may accelerate to 3.5 percent next year, up from 3 percent this year, according to the median of 27 economist estimates compiled by Bloomberg.

“Putting political risks aside, Turkish stocks are cheap and operations at the so-called blue-chip companies are not deteriorating,” Mehmet Gerz, the chief investment officer at Istanbul-based Ata Portfoy, said by e-mail. “The stock market looks attractive at current levels for investors willing to stay more than one year.”