Turkish stock market investors flee as Erdogan crackdown continues after failed coup

 
Jake Cordell
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Pro-government protesters celebrate quashing the attempted military putsch
Pro-government protesters celebrate quashing the attempted military putsch (Source: Getty)

The Turkish stock market suffered its sharpest one-day fall in more than three years today in the first day of trading since Friday's failed military coup.

All but one of the top 100 stocks on the Borsa Istanbul were in the red today as the index slid by 7.1 per cent as political uncertainty lingered following the dramatic events over the weekend.

Meanwhile, the Turkish lira recovered some of the ground it had lost, rising 1.75 per cent to $0.3371. It is still down three per cent from where it stood hours before sections of the country's armed forces tried to oust President Recep Tayyip Erdogan while he flew back from holiday on Friday night.

Government officials declared they now have full control over the country and have promised a period of retribution for those linked to the attempted coup. More than 6,000 plotters have been arrested from the armed forces and the judiciary while nearly 9,000 civil servants at the interior ministry have been sacked.

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Analysts said that although the lira stabilised on Monday, with attention still locked on Turkey and Erdogan's regime, it was likely to slide further.

"It goes without saying that any emerging market currency would probably suffer losses in the event of a coup," said David Rees of Capital Economics.

"But a fragile balance of payments position has meant that the lira has long been one of the most volatile. Despite some recent improvements, its precarious external position means that it is likely to remain so for the foreseeable future."

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