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


Daily %

change MSCI Emerging Markets


-0.54 .MSCIEF



-0.12 .MILA00000PUS

Brazil Bovespa


-0.23 .BVSP

Mexico IPC


- .MXX

Chile IPSA


-0.29 .SPIPSA

Argentina MerVal



Colombia COLCAP


0.25 .COLCAP



Daily %

change Brazil real


-0.28 BRBY

Mexico peso


0.37 MXN=D2

Chile peso


0.68 CLP=CL

Colombia peso COP=


-0.15 Peru sol


0.07 PEN=PE

Argentina peso


-0.05 (interbank) ARS=RASL

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

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.