FINANCIAL MARKETS - Istanbul bourse launches participation index

In an effort to tap the growing area of Islamic banking, the Istanbul Stock Exchange launches a participation index in a ceremony. The index, comprised of 30 companies, includes giants such as Türk Telekom, BİM, Enka İnşaat, Ford Otosan and Petkim. Hüseyin Erkan, chairman of the bourse, says the exchange may also establish separate indexes for groups such as holding companies.

Top executives of Islamic lenders and the Istanbul Stock Exchange sign the protocol on the creation of a participation index at the Istanbul Stock Exchange on Thursday.

The Istanbul Stock Exchange, or ISE, launched a participation index, made up of equities that adhere to the principles of Islamic lending, at a ceremony Thursday.

The main reason for the creation of the participation index is to offer a special Islamic and domestic index “suited to the customer profile of participation banks,” according to exchange officials who spoke at the ceremony.

Pointing to the rapid and steady growth of Islamic banking in Turkey since 2004, Fahrettin Yahşi, chairman of Turkey’s Participation Banks Association, or TKBB, said the participation index will be an important service to provide standardization in the sector. Yahşi is also the general manager of Albaraka Türk, majority-owned by the Albaraka Banking Group.

FINANCIAL MARKETS - KATLM "Participation Index" for the IMKB/ISE Istanbul Stock Exchange

 As from Jan 6, 2011 a new "Participation  Index" (KATLM) will be listed on the IMKB/ISE Istanbul Stock Exchange, sponsored by the 4 Turkish Participation Banks (Albaraka Turk, Bank Asya, Kuveyt Turk and Turkiye Finans) and advised by BMD Bizim Menkul Degerler.

There is an industry screening and financial screening (max 30 % interest bearing debt - max 30 % cash and interest bearing receivables - max 5 % non permissible income model) that is further narrowed down to the 30 biggest companies listed (details HERE).

Unfortunately, the index apparently only targets the interests of Turkish investors, since the website uniquely caters for a Turkish speaking audience.

To give you an idea of the initial industry spread, see hereunder:

BANKING - RATINGS - Capital Intelligence Assigns Initial Ratings To Albaraka Turk Katilim Bankasi

Capital Intelligence (CI), the international credit rating agency, today announced that it has assigned an initial Financial Strength rating of BB to Turkey's Albaraka Türk Katilim Bankasi A.Ş. (ATKB). In addition, initial Foreign Currency ratings of BB long-term and B short-term are assigned to the Bank. In view of the Bank's ownership and a reasonable expectation of support from its majority shareholder, an initial Support rating of 3 is assigned. The Outlook for all ratings is stable.

BANKING - Ulker Family leaves the finance sector (Turkiye Finans, BMD, Albaraka Turk)

On Sept 30, 2010 the Ulker Family sold its' stakes in Albaraka Turk and Turkiye Finans.

   

The Turkiye Finans shares were sold by Murat Ülker, Ali Ülker (Özokur),  Ahsen Özokur, Orhan Özokur to Gozde Finansal Hizmetlere (Gozde Financial Services) and therefor stay in the Yildiz Group.

 

The shareholdings in Albaraka Turk (1.290.000 shares) that were sold to Gozde Factoring (also part of the Yildiz Group).

 

Also on Sept 30, 2010 they sold their stake in Bizim Menkul BMD to the Istikbal Group (part of Boydak Group).  

 

The Ulker Family apparently have no more direct stake in the Turkish finance sector.

BANKING - CAPITAL MARKETS - ETFs continue to make inroads

LONDON: Islamic exchange-traded funds (ETFs) continue to make slow but steady market penetration with the recent launch of a gold-based ETF, GoldPlus, launched in Istanbul by Kuveyt Turk Participation Bank, in which Kuwait Finance House has a controlling 62 percent equity state, and the imminent launch by BNP Paribas Investment Partners of its second Islamic ETF, part of its Easy ETF range, which will be listed on Bursa Malaysia.