Turkey Stocks Soar On State Support As Quake Deaths Surpass 40,000

After a week-long suspension, Turkish stocks soared Wednesday after the country’s sovereign wealth fund supported financial markets to prevent further declines following last week’s twin earthquakes. The death toll in Turkey and neighboring Syria has surpassed 40,000. 

Here are the top headlines via Bloomberg of the intervention to save financial markets: 

• Turkey Stocks Surge as State Support Underwrites Reopening Boost
• Turkey Injects Billions of Liras to Prop Up Stocks Before Open
• Turkey Wealth Fund to Support Equities With New Mechanism
• Turkey Set to Temporarily Suspend Some Gold Imports 
• Turkey Plans Tax Waiver for Share Buybacks on Stock Exchange

The Borsa Istanbul 100 Index jumped 9.82% today, as the main equity benchmark recovered much of its losses since the twin earthquakes rocked the country’s southeast region on Feb. 6. 

Bloomberg, citing officials with direct knowledge of the matter, stated that Turkey’s sovereign wealth fund supported equities in a new internal mechanism to suppress market volatility. 

“All the measures taken seem to have been successful in boosting the equity market.”

“The market reaction for now says most of the demands of the market players are met,” said Burak Isyar, the head of equity research at ICBC Turkey Investment in Istanbul. 

Another mechanism to support stocks was Turkish firms’ announcement of large share buyback plans. Turkish Airlines, Erdemir, and Isbank debuted new buyback programs. State-owned lenders Vakifbank and Halkbank boosted their existing programs. 

In New York, iShares MSCI Turkey Exchange Traded Fund, the largest ETF concentrated on Turkish stocks, jumped 8% yesterday and is up 6% in premarket trading. 

Meanwhile, the number of dead in Turkey and Syria crossed a grim mark today, surpassing 40,000. Tens of thousands of people are still missing as quakes leveled large swaths of ten cities.