Feb 15, 2023

Quake Latest: 40,000 Killed; Turkey Stock Market Set to Reopen

Bloomberg News, Bloomberg News

A rescue team works at the site of collapsed residential buildings in Hatay, Turkey, on Sunday, Feb. 12, 2023. The two massive earthquakes that killed over 24,000 people in Turkey are expected to result in an loss to the nation’s economy of over $84 billion, or about 10% of the GDP, according to estimates of the Turkish Enterprise and Business Confederation. Photographer: David Lombeida/Bloomberg , Bloomberg

(Bloomberg) --

Turkey’s stock market surged on Wednesday as trading resumed following last week’s suspension due to the earthquakes.

The death toll in Turkey and neighboring Syria surpassed 40,000.

Turkish banks will allocate 50 billion liras ($2.7 billion) from their 2022 income to help the relief effort, President Recep Tayyip Erdogan said. That will add to the government’s pledge of an initial 100 billion liras, with the amount expected to increase.

Key Developments:

Turkey Stocks Surge Almost 10% as State Underwrites Reopening
Turkey Primes Fiscal Pump, With Quakes Shaping Up as Budget Test
Turkey Arrests 20 Over ‘Provocative’ Social Media Posts on Quake
Turkey Injects Billions of Liras to Prop Up Stocks Before Open
Turkey Wealth Fund to Support Equities With New Mechanism
Why Turkey’s Next Election Is a Real Test for Erdogan: QuickTake

(All times Istanbul, GMT+3)

Turkey Arrests 20 Over ‘Provocative’ Social Media Posts on Quake (1:48 p.m.)

Turkish police arrested 20 people for social-media posts about last week’s deadly earthquakes, saying the messages were “provocative.”

The move comes amid growing criticism of the government’s handling of the rescue effort in the crucial first few days following the disaster.

Turkey Thanks Armenia For Rescue Efforts (12:08 p.m.)

Turkish Foreign Minister Mevlut Cavusoglu thanked his Armenian counterpart Ararat Mirzoyan for sending aid. During Mirzoyan’s visit to Ankara, the ministers discussed efforts to normalize ties, including plans to rebuild the Silk Road Bridge at the border.

Read more: Armenian Aid Trucks Enter Turkey for First Time in 30 Years

Turkey Stocks Surge After Quake Suspension (9:56 a.m.)

Turkish stocks soared on their return from a week-long suspension after authorities threw their full weight behind investors to avoid a repeat of last week’s rout.

The Borsa Istanbul 100 Index climbed more than 5% at the open before rising as much as 9.8%, outperforming all other major world markets, and is headed for the biggest single-day advance since 2008.

Turkish Companies Rush to Buy Back Shares (8:00 a.m.)

Prior to the reopening of the stock market on Wednesday, Turkish firms, led by state-run companies, announced share buyback plans. Turkish Airlines, Erdemir, and Isbank initiated new buyback programs, while state-owned lenders Vakifbank and Halkbank increased their existing programs.

Quakes Hit Turkey’s Cotton Yarn Capacity (7:53 a.m.)

About 500 textile factories in Kahramanmaras have halted operations and it may take about six months to restart production, Ekonomi newspaper reported.

Turkish Banks to Allocate 50 Billion Liras For Relief (8:32 p.m.)

Turkish lenders will allocate 50 billion liras ($2.7 billion) from their 2022 income to help with the relief efforts, Erdogan said after a cabinet meeting late Tuesday.

Death Toll Surpasses 40,000 (8:32 p.m.)

The number of dead in Turkey and Syria rose to 40,835 according to Turkish officials and the Syrian Observatory for Human Rights, which uses a network of activists on the ground. Tens of thousands of people were still missing.

--With assistance from Taylan Bilgic and Ugur Yilmaz.