Turkey ETF hurt by plot, Greece
Posted: Wednesday, Feb. 24, 2010 By Kevin Kennedy CoolcatReport.com A bungled coup plot by Turkish military leaders and financial troubles in nearby Greece are hampering shares of high-flying iShares Turkey (NYSE: TUR).
The Turkish exchanged traded fund (ETF) traded as low as 48.05 today, an almost 12% plunge in less than three trading days, to fall almost 19% off its 52-week high set Jan. 19. It closed off 2.4% Wednesday at 49.65, down almost 8% year to date but still up an impressive 124% in the past year.
Eric Dutram, an analyst with ETF Database, said Tuesday news of arrests in the aborted coup led to the recent selling. Dutram said the plot included plans to destroy mosques and push Greece into a confrontation with its neighbor and historical rival. “This event brought up memories of the forced resignation of the Turkish prime minister in 1997, the fourth overthrow or forced resignation since 1960,” said Dutram, “and left investors to wonder how far the emerging market has really progressed and whether European Union membership is attainable at any point in the near future.” Dutram also said the possibility of Greece getting forced out of the EU would isolate Turkey from Europe geographically. The dominance of financial holdings in the Turkey ETF at a time when Greece and other European countries are struggling to stay afloat is a further negative. iShares Turkey is a holding in the ETF Portfolio in the Coolcat ETF Report and is also a component of the Total Stock Market Portfolio in the Coolcat Total Stock Market Report. The recent slide has put it below its 50-day moving average of 54.58, while it has found support in the 200-day moving average of 47.16 for now. The November low of 44.15 also offers support. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * CoolcatReport.com publishes four great investment newsletters to give you the right tools to find big winning stocks and dramatically improve your investing results: * Discover our strategies and check out our performance. * Take advantage of our free resources, including The Top 50 Investing Websites. Sanger CA 93657 (559) 875-0613 © 1997, 1997-2010 CoolcatReport.com 
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