Turkish Beermaker’s Rally Fizzles Out as Election Optimism Fades
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(Bloomberg) -- For a few days last week, the idea that a change in government may lead to a loosening of restrictions on alcohol sales gave a big lift to shares of Turkey’s top beer maker. Sunday’s election result changed all that.
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In the two days since President Recep Tayyip Erdogan garnered a comfortable lead after the first round of polling, Anadolu Efes Biracilik ve Malt Sanayii AS has given back all of the previous week’s 22% gain. It’s been a similar story for another listed beermaker, Turk Tuborg Bira ve Malt Sanayii.
According to Burak Isyar, head of research ICBC Securities in Istanbul, some traders had been betting on relaxed rules on alcohol sales in the event that opposition candidate Kemal Kilicdaroglu won the election. The “psychological optimism seems to be melting away as the expectations change,” he said.
Under Erdogan’s watch, some municipalities cracked down on venues with outdoor seating areas that spilled into the streets, transforming once popular night spots. Among other measures, promotion of alcohol has been banned, retailers forbidden from displaying alcoholic products where they would be visible from outside, and taxes on alcohol consumption have increased.
Turkey Set for Runoff as Erdogan Falls Just Short of Victory
Story Link: Turkish Beermaker’s Rally Fizzles Out as Election Optimism Fades
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