Turkey Stocks, ETF Plunge Following Failed Coup

The Turkey exchange traded fund plunged Monday, with Turkish markets experiencing its worst plunge in three years, after the failed coup late Friday.

The iShares MSCI Turkey ETF (NYSEArca: TUR) declined 6.1% Monday, dipping below both its 50- and 200-day simple moving averages.

Meanwhile the 7.1% plunge in Turkey’s benchmark Borsa Istanbul 100 Index was the benchmark’s worst since June 3, 2013 when then-Prime Minister and current-President Recept Tayyip Erodgan clamped down on anti-government protests, Bloomberg reports.

Turkish markets plummeted on concerns of the implications of the ensuing political turbulence after a failed coup d’etat attempt from the military branch. While Erodgan’s swift crackdown after the coup offers stability of sorts, the lingering uncertainty will continue to weigh on investment confidence, writes Swaha Pattanaik for Reuters.

Looking ahead, Turkish growth could slow in the wake of the coup attempt. Consumer and business confidence, along with tourism revenue, will likely come under pressure.