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:
change MSCI Emerging Markets
change Brazil real
Colombia peso COP=
-0.15 Peru sol
-0.05 (interbank) ARS=RASL
Reporting by Susan Mathew in Bengaluru; additional reporting by Karin Strohecker in London.
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