Turkish lira slides 6%; Brazil mall operators jump



By Susan Mathew

Dec 29 (Reuters) - Turkey's lira slid another 6% on Wednesday, and Brazil's real and the Colombian peso also fell, while shares in Brazilian mall operators BR Malls and Aliansce Sonae and BR Malls jumped on a possible tie-up.

The lira TRY= fell for a third straight session, to around 12.65 to the dollar at 1424 GMT. It was about 16% down on the week, after surging more than 50% last week from record lows of 18 per dollar.

Worries about politically driven unconventional Turkish central bank policies have hammered the currency this year. In a Reuters poll, annual inflation was expected to exceed 30% this month, while the benchmark interest rate has been cut to 14%.

Implied volatility gauges held near record highs hit in recent days, data from Fenics showed. TRY1YO=FN , TRY3MO=FN , TRYSWO=FN

While Turkey should be of little importance for foreign institutional equity investors, accounting for only 0.2% of the MSCI EM index, Hasnain Malik, head of equity research at Tellimer, said its average daily value traded was close to $2bn over the last six months, placing it above Saudi Arabia, South Africa and Russia.

Turkish stocks .XU100 , which had scaled all-time highs this month, were about 21% below those levels on Wednesday. On the day, they were up about 2%, while on the year they have gained 28%.

In Latin America, a steady dollar and higher copper prices lifted Chile's peso CLP= 0.7%. Chile's central bank had considered hiking the interest rate by as much as 150 basis points this month, before deciding to raise by 125 bps, minutes showed.

Mexico's peso MXN= firmed for the fifth time in six session, while Brazil's real BRBY fell 0.3%, with eyes also on month-end derivative settlements that could turn the direction of the currency.

Falling oil prices weighed on Colombia's peso COP= and Latam oil producers such as Petrobras PETR4.SA .

Courts in four Brazilian states have suspended a 50% hike in natural gas prices planned by Petrobras, likely kicking off an intense legal battle between the state-run enterprise, the distributors that buy its fuel and various political authorities.

But losses on Sao Paulo's Bovespa stocks index .BVSP were capped by BR Malls BRML3.SA , whose shares rose 2.7% after it confirmed that Aliansce Sonae Shopping Centers ALSO3.SA had contacted it to evaluate an acquisition or tie-up.

A tie-up would create the biggest mall operator in Brazil. Aliansce shares were up 3.3%

Key Latin American stock indexes and currencies at 1407 GMT:

Stock indexes

Latest

Daily %

change MSCI Emerging Markets

1220.46

-0.54 .MSCIEF

MSCI LatAm

2109.10

-0.12 .MILA00000PUS

Brazil Bovespa

104618.30

-0.23 .BVSP

Mexico IPC

-

- .MXX

Chile IPSA

4257.15

-0.29 .SPIPSA

Argentina MerVal

-

- .MERV

Colombia COLCAP

1408.20

0.25 .COLCAP

Currencies

Latest

Daily %

change Brazil real

5.6543

-0.28 BRBY

Mexico peso

20.5664

0.37 MXN=D2

Chile peso

848.9

0.68 CLP=CL

Colombia peso COP=

4011.6

-0.15 Peru sol

3.9446

0.07 PEN=PE

Argentina peso

102.6700

-0.05 (interbank) ARS=RASL


Reporting by Susan Mathew in Bengaluru; additional reporting by Karin Strohecker in London.

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