EXPECTATION: Turkish cement companies' shares gain the most on the expectations that the demand on cement will rise. Bloomberg photo.
Turkish cement companies including Heidelberg Cement’s Akçansa Çimento rose in Istanbul Friday on speculation that demand for cement may surge after banks cut interest rates on mortgages.
Akçansa added 22 kuruş, or 4.8 percent, to 4.78 Turkish Liras at the close in Istanbul, the highest level in 11 months. Çimsa Çimento Sanayi & Ticaret gained 43 kuruş, or 8.6 percent, to 5.45 liras.
Garanti Bank is among Turkish banks that started reducing rates on housing loans as the central bank cut the benchmark borrowing rate to a record low of 7.75 percent on Aug. 18. The Central Bank said it foresees more reductions in the “short term.” Home loans increased 0.1 percent in the week to Aug. 14, the fourth-straight weekly gain, the Central Bank said in a report published on its Web site.
“Lower lending rates should trigger more housing sales and more housing sales mean cement demand will increase in the coming period,” said Kurthan Atmaca, an analyst at Ekspres Invest in Istanbul.
Batıçim Batı Anadolu Çimento Sanayii, part-owned by Orascom Construction Industries, rose 25 kuruş, or 4.2 percent, to 6.25 liras.