Halkbank shares rally as June 10 end of US sanctions case nears
Shares of Turkish state lender Halkbank surged nearly 10% on Tuesday on market anticipation that the US sanctions case against the bank will conclude on June 10, when a 90-day compliance deadline under its March agreement expires. "Linking the recent moves in the stock to speculation surrounding the approaching end of this process would not be wrong," said Ata Invest's Cemal Demirtaş. Halkbank shares are up 25% year-to-date against a 6% decline in Türkiye's main banking index, and analysts say a resolution could reopen non-deposit funding channels.
Shares of Türkiye's state lender Halkbank surged nearly 10% on Tuesday, a move analysts tied to anticipation that the US case against the bank will end on June 10 — the close of a 90-day window for the bank to demonstrate compliance with the agreement it signed in March. The stock was up a further 1.8% at TL 48.7 by 1 p.m. local time (10:00 GMT) on Wednesday.
"Linking the recent moves in the stock to speculation surrounding the approaching end of this process would not be wrong," said Cemal Demirtaş, deputy general manager for research at Ata Invest, who added that limited liquidity in Halkbank shares was contributing to the sharp price swings. The stock has risen 25% year-to-date while Türkiye's main banking index is down 6%, and analysts say a resolution could enable faster growth at the bank by reopening non-deposit funding channels.
Halkbank was accused of allegedly helping Tehran evade US economic sanctions. Under the March agreement, the bank is forbidden from entering into transactions that benefit Iran; it said it would not admit to any criminal wrongdoing and would not pay any judicial or administrative fines. Following the deal, Halkbank hired Ernst & Young to review its compliance with US sanctions and anti-money-laundering policies, the bank's lawyers said in a court filing in March.
The rally opens a data-heavy June for Turkish markets, with first-quarter GDP, monthly inflation and a central bank rate decision all due in the coming weeks.