By IRNA,
Ankara : Investors in Turkish stocks, bonds and the lira are expected to welcome the Constitutional Court’s decision to refrain from banning the ruling Justice and Development Party (AKP) with satisfaction based on a surge in confidence seen over the past three days.
Today’s Zaman newspaper said that investors had started to rely on their belief that the government would not collapse and that Prime Minister Recep Tayyip Erdogan would continue running the country, as he has done so far, with market-friendly and EU-favorable policies.
The benchmark index of the Istanbul Stock Exchange (IMKB-100) yesterday enjoyed the highest increase it has seen in the last four months, with a jump above 5.5 percent at the end of the day. Gains on lira-based bonds fell to their lowest since May. The lira also surged to its highest point of the last five months.
The decision came out more or less as expected by these dailies, as six judges said the party should be closed on charges of becoming a focal point of anti-secular activity and five were unsatisfied with the evidence presented against the AK Party by the chief public prosecutor.
Nevertheless, the court did decide to deprive the AK Party of half of its Treasury funding.