July 1 (Bloomberg) — Turkey’s benchmark ISE National 100 Index lost 4.89, or 0.01 percent, to 63,264.51 at the 5:30 p.m. close in Istanbul, paring gains over the week to 1.9 percent.
The following stocks were active. Symbols are in parentheses.
Bizim Toptan Satis Magazalari AS (BIZIM TI), a wholesale food supplier, gained 80 kurus, or 3.1 percent, to 26.80 liras, rising for a second day. The company was added to the ISE National 100 index of Turkey’s largest companies by market value today, according to a statement from the exchange.
Migros Ticaret AS (MGROS TI), a supermarket chain, added 30 kurus, or 1.6 percent, to 19.25 liras, its highest since June 8, after being moved into the ISE National 30 list of Turkey’s 30 biggest companies.
–Editors: John Kohut, Linda Shen.
via Turkey Equity Movers: Bizim Toptan, Migros Move in Istanbul.
Although they command only 5% of the market share in Turkey, “participation banks” see room for growth.
By Henry Shapiro for Southeast European Times in Istanbul – 01/07/11 photo
The Istanbul Stock Exchange opened an index on Sharia compliant banks and companies this year. [Reuters]
Earlier this year, the Istanbul Stock Exchange launched an index of Sharia compliant banks and companies. Since then, the emergence of “Islamic banking” — also known as “participation banking” — has garnered considerable media attention.
It has been widely reported that these banks do not charge interest, or “riba”, because it is forbidden according to Islamic law. The actual mechanisms by which the banks operate, however, and the ways in which they differentiate themselves from the mainstream financial sector, remain poorly understood.
Four participation banks are currently operational in Turkey: al Baraka, Bank Asya, Kuveyt Türk, and Türkiye Finans. Like mainstream financial institutions, these banks offer a wide range of services, including savings and checking accounts, house and automobile financing, and even Islamic bonds, or “sukuk”, offered through Kuveyt Turk.
But for each of these services, an alternative mechanism has been developed to make profits without violating Islamic law regarding transactions and trade.
For example, customers with savings accounts at participation banks do not receive monthly interest payments at a certain rate. The banks use funds to supply goods and services directly according to a profit/loss investment model.
Savings funds are invested in tangible goods, real estate, or industry, and at the end of the month profit and loss is shared with the customer. A profit margin is not guaranteed, and no investment is made in companies dealing with pork, alcohol, or other banned commodities, according to the Participation Bank Association of Turkey.
Whereas car financing at a conventional bank entails a loan repaid with interest, Kuveyt Türk buys automobiles on behalf of customers, then sells them in installments at a higher price. Instead of charging interest, they see the transaction as buying and selling at a profit.
Currently, about 5% of deposits, assets and loans in Turkey are held by participation banks, but the Participation Bank Association of Turkey foresees massive growth.
The assistant to the association’s General-Secretary Osman Nihat Yılmaz told SETimes that he predicts participation banks’ market share to double in size, reaching ten percent in the next ten years.
According to Yilmaz, participation banks in Turkey faced the current financial crisis “from a sound position”.
“The banking sector in Turkey is more resilient compared to Western banks,” he says, because of precautions made after the banking crisis of 2001. Moreover, he said participation banks in particular do not “get interest risk because we don’t deal in interest transactions”.
Turkish participation banks now control a very small share of the total assets held in Islamic banks worldwide, approximately ninety percent of which are held in Iran, the Persian Gulf, and Malaysia, according to The Banker.
Yilmaz says that Islamic banking is aimed primarily at conservative people in Turkey, which he describes as consisting of twenty percent of the Turkish population, adding that “it may rise to 40 or 50”. But he admits that participation banks need to persuade target segments as well other people about the banks’ services
When asked whether or not instability in the Middle East created an opportunity for Turkish banks to increase their market share, Yilmaz told SETimes, “we worry for our neighbours” and don’t want to profit at their expense.
But someday “we want Istanbul to become the centre” of banking in the Middle East, he added.
This content was commissioned for SETimes.com.
via Islamic banking offers a different model (SETimes.com).
LONDON & DUBAI, United Arab Emirates, Jun 30, 2011 (BUSINESS WIRE) — J.P. Morgan announced today that it has appointed Sjoerd Leenart to be the Senior Country Officer of the Middle East and North Africa (MENA) region, based in Dubai. The firm has also hired Emre Derman to be Senior Country Officer of Turkey. Both executives will report to Emilio Saracho, head of Investment Banking for Europe, the Middle East and Africa.
“These appointments represent our continued commitment to the region,” said Saracho. “We have made no secret about our expansion plans and we are confident that Sjoerd and Emre will continue to grow and maximize opportunities in those markets.”
Senior Country Officers are responsible for building and managing J.P. Morgan’s regional presence across lines of business, including the Investment Bank, Asset Management, Treasury & Securities Services and the Global Corporate Bank. They play a central role in delivering the firm’s global capabilities to local clients.
Leenart has been with J.P. Morgan for 17 years and has held numerous roles. Most recently he was co-head of Debt Capital Markets and Sales & Marketing for Central and Eastern Europe, the Middle East, Africa and Latin America.
“It’s a privilege to take on this important and prestigious role at J.P. Morgan,” said Leenart. “We have built great momentum in the region and I look forward to building out the franchise further.”
Derman joins J.P. Morgan with a successful legal career, advising on a broad range of major corporate transactions in the Turkish market. He spent 18 years at law firm White & Case in Istanbul and London as a senior associate and partner. He managed the Istanbul office achieving record fiscal performance and growth.
“I’m excited to join J.P. Morgan, which has a long, successful track record in Turkey,” said Derman. “I’ll be able to provide local clients with the expertise, products and financial strength of J.P. Morgan’s global network behind me.”
Leenart and Derman effectively take on responsibilities that were once held by Murad Megalli, the former head of the region who died in a plane accident earlier this year. Mark Garvin, chairman of Treasury & Securities Services International, has been temporarily acting as the interim Senior Country Officer for the MENA region.
# # #
About J.P. Morgan
JPMorgan Chase & Co. /quotes/zigman/272085/quotes/nls/jpm JPM +1.21% is a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan, Chase, and WaMu brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com
SOURCE: J.P. Morgan
via J.P. Morgan Appoints Senior Country Officers in the Middle East and Turkey – MarketWatch.
Hilton Worldwide has announced plans to enter the cheap hotels business in Turkey through a brand to be called Hampton by Hilton.
The company has signed agreements on four Hampton by Hilton hotels and is running two other projects in 2011.
“Turkey is a powerful and growing country, which encouraged our decision,” Michael Collini, the company’s vice president of development in Turkey, Russia and Eastern Europe, said Thursday in a press conference where the agreements were unveiled. A gap exists in economic hotels in Turkey, he added.
The four Hampton by Hilton hotels will be built in Istanbul’s Kayaşehir neighborhood, Tekirdağ’s Çorlu district, the Black Sea province of Rize and the southeastern province of Gaziantep. Hilton has projects for two more Hampton by Hilton hotels in Bursa and Ordu, Collini said, adding that the company thus wants to six cheaper hotels up and running by the end of the year.
Hilton will follow a three-stage strategy, according to Collini: First, it aims to grow in all economic, luxury and medium segments in Istanbul; second, it will expand in other provinces through the Hilton Garden Inn or Hampton by Hilton; third, the company aims to construct residences in Turkey for both Hilton and Hampton by Hilton.
“Hampton by Hilton will provide cheap accommodation and meet all business and entertainment needs for Turkish customers,” Collini said. The brand has a long history in the United States and there are a total of 1,800 branches worldwide, he added.
There are currently 17 Hilton Worldwide hotels providing services in Turkey, and this number will be doubled by the end of 2011, Collini said.
Hilton also aims to bring the Waldorf Astoria Hotels & Resorts luxury brand to Turkey, but this will not be possible in the short run, Collini told journalists.
Asked about whether the company planned to expand into the Middle East, Collini said they were already present in some such countries. “We have opened development offices in strategic markets, such as in Dubai. As a U.S. firm, we are currently unable to open hotels in certain countries, due to security concerns. … However, we aim to expand in regions like China, India and Dubai.”
Istanbul’s Hampton by Hilton will be opened in August 2012, according to Acun Uyar, the general director of Makro İnşaat, the firm that is constructing the hotel. Uyar said 25 million dollars were invested in the hotel, which will have a total of 144 rooms.
via Hilton launches cheap hotel chain in Turkey – Hurriyet Daily News.
VANCOUVER, BRITISH COLUMBIA, Jun 30, 2011 (MARKETWIRE via COMTEX) — Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation (asx:EAU) (“Eldorado” the “Company” or “we”) is pleased to announce the start-up of the Efemcukuru gold mine in Izmir, Turkey. The necessary permits are in place to allow full mining and processing operations, and low grade ore is currently being fed to the mill. Mining activities continue in the South Ore Shoot, and approximately 16,000 tonnes at 10.5 g/t Au have been stockpiled at the plant site. At full production, Efemcukuru will produce 120,000 ounces of gold per year and Eldorado is currently studying the potential to bring the operation up to 150,000 ounces per year.
In addition, we are very pleased to announce that the Kisladag Mine achieved a significant milestone in May of this year, having produced over one million ounces of gold since the project started in 2006.
“We are extremely proud of these two achievements, and I would like to take this opportunity to thank our employees in Turkey and Canada for their hard work and perseverance,” said Paul Wright, President and Chief Executive Officer of Eldorado Gold. “Kisladag has been the cornerstone of the Company, and the fact that it has now produced over 1,000,000 ounces of gold at cash costs of approximately $285 per ounce is a testament to the quality of this operation.
The successful start-up of Efemcukuru is the result of years of hard work. This high grade operation will contribute low cost ounces and help ensure that Eldorado remains in the industry’s lowest quartile of production cash costs.”
Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Brazil and Greece. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that Eldorado is well positioned to grow in value as we create and pursue new opportunities.
ON BEHALF OF ELDORADO GOLD CORPORATION
Paul N. Wright, President and Chief Executive Officer
CAUTIONARY CONCERNING FORWARD-LOOKING STATEMENTS
Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information herein include, but are not limited, to statements or information with respect to operations in Turkey.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information, including assumptions about the price of gold; anticipated costs and expenditures; estimated production, mineral reserves and metallurgical recoveries; the impact of the integration of acquired businesses on our operation, financial position, reserves and resources and gold production; and the ability to achieve our goals. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statements or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: gold price volatility; risks of not meeting production and cost targets; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment and operating in foreign countries; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; the risk that the integration of acquired businesses taking longer than expected, the anticipated benefits of the integration may be less than estimated and the costs of acquisition higher than anticipated; ability to complete acquisitions; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Information Form & Form 40-F dated March 31, 2011.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company’s business contained in the Company’s reports filed with the securities regulatory authorities in Canada and the U.S.
Eldorado Gold Corporation’s shares trade on the Toronto Stock Exchange and the New York Stock Exchange. Our Chess Depositary Interests trade on the Australian Securities Exchange (asx:EAU).
Request for information packages: reception@eldoradogold.com
As Turkish manufacturers produce more, they also import more because they rely on semifinished components. Above, employees working earlier this year at the Karsan Otomotiv Sanayii AS factory in Bursa, Turkey.
Bloomberg As Turkish manufacturers produce more, they also import more because they rely on semifinished components. Above, employees working earlier this year at the Karsan Otomotiv Sanayii AS factory in Bursa, Turkey.
Bloomberg
As Turkish manufacturers produce more, they also import more because they rely on semifinished components. Above, employees working earlier this year at the Karsan Otomotiv Sanayii AS factory in Bursa, Turkey.
ISTANBUL—The Turkish economy grew by 11% in the first quarter, outstripping China and confirming Turkey as Eurasia’s rising tiger.
Turkish Tiger
Demand-fueled surge in growth sucks in imports
Q1 year-on-year GDP growth: 11%
Q1 quarter-on-quarter GDP growth: 1.4%
May imports year on year: 42.6%
May exports year on year: 11.7%
May trade deficit year on year: 104% ($10,057 million from $4,926 million in May 2010)
Source: Turkstat
Thursday’s official growth figure, compared with the year-earlier period, easily beat market expectations, at a time when many of Turkey’s neighbors in the Middle East and Europe struggle with political turmoil and bailouts.
“In growth, we passed China and Argentina, we became No. 1 in the world,” Prime Minister Recep Tayyip Erdogan boasted in response to the figures Thursday, as he addressed lawmakers from the ruling Justice and Development Party, or AKP, in Ankara. China and Argentina posted 9.6% and 9.9% growth, respectively, for the quarter.
Turkey’s hot economy stands in contrast with those of most neighbors in the European Union, in particular Greece, whose leader last week called on his citizens to emulate the success of his country’s old rival in bouncing back from economic adversity. Rapid growth also swept Mr. Erdogan to re-election June 12, cementing his position at the head of the region’s emerging political and economic power.
But in what is fast emerging as a Turkish paradox, foreign investors aren’t rushing to snap up assets.
