Turkish stock market falls as demonstrations escalate

Uk, June 3 – Turkey's main share index has fallen by more than 6% following investor concerns over the escalation of anti-government protests over the weekend.

 

The Borsa Istanbul 100 share index fell to 79,047 as investors feared the demonstrations could hit the economy.

 

Demonstrators nationwide clashed with police after water canons and tear gas were used to control crowds.

 

The protests were originally sparked by plans to build on an Istanbul park.

 

As well as sharp falls in the stock market, there was also a big rise in the cost of insuring Turkey's debt against default.

Nationwide unrest

 

Protests over the demolition of Gezi Park to make way for the rebuilding of an Ottoman-era barracks, reportedly to house a shopping centre, began on a small scale earlier this week, but have escalated into violent demonstrations.

 

Protesters said the park was one of the few green spaces in Istanbul, and were angry at the loss of public space for commercial purposes.

 

The interior minister said that 1,700 people had been detained in the nationwide unrest.

 

Mosques, universities and shops are being turned into makeshift hospitals to deal with the injured.

 

Turkish economic growth slowed sharply to 2.2% last year and the central bank has been trying to spur the economy since mid-2012, embarking on a series of rate cuts since last September.

 

BBC