Turkish stocks traded as much as 2 percent higher and the lira hit a two-month high Monday after Prime Minister Tayyip Erdogan’s party claimed victory in local elections.
Turkey’s BIST 100 opened 1.95 percent higher adding to the 8.5 percent gains seen in the last week, before easing. As of 11:30 am London time, the BIST was trading over 0.5 percent higher after Erdogan’s Justice and Development Party (AKP) took around 46 percent of the vote in the nationwide election.
The lira also firmed against the greenback, touching its strongest level since the end of January and yield’s of the country’s 10-year government bond edged lower to 10.48 percent.
The election result marks the first time voters have returned to the polls since mass protests seen last June and have been heralded as a marker of Erdogan’s popularity. In the weeks leading up to Sunday’s election, Erdogan banned social media platform Twitter and video sharing site YouTube which he claimed were efforts to unseat him ahead of the elections.