Energy shares see steep fall in Turkey’s stock market following gas discovery announcement

Shares in Turkey’s Tüpraş refinery and petrochemicals company Petkim have seen a steep fall after Turkish President Recep Tayyip Erdoğan announced the discovery of a 320 billion cubic metre reserve of natural gas off of Turkey’s northern coast.

Tüpraş shares fell by 7.55 percent, while Petkim saw a fall of 8.60 percent, returning to their previous levels before the sudden hike earlier in the week.

Zorlu Energy shares also declined 8.93 percent after Erdoğan’s announcement.

Tüpraş and Petkim saw a rise of 7.58 and 9.87 percent respectively on Wednesday when Erdoğan first spoke of a surprise announcement he would make on Friday.

Energy companies saw an overall downturn after the announcement, news website T24 reported.

Turkey’s discovery of a 320 billion cubic metre reserve of natural gas in the Black Sea was sceptically welcomed among the opposition, but the markets have not reacted well.

The lira started falling after Erdoğan’s speech began on Friday evening, from 7.2254 per dollar by the beginning to 7.3145 by the end of the president’s announcement.

Erdoğan said Turkey’s exploration efforts would continue in the Black Sea, and “accelerate by the end of the year,” in the Mediterranean.