MSCI removes six Turkish firms, including major banks, from indexes

MSCI removed the shares of six Turkish firms, including two major banks, from its benchmark equity indexes.

Yapı Kredi and Vakıfbank were the two banks deleted from the MSCI Global Standards Indexes. The other Turkish companies were Ülker, which is the owner of Godiva chocolates, Coca-Cola Içecek, state-run real estate firm Emlak Konut and Tofaş, which produces Fiat cars in the country.  

The net removal of Turkish companies – none were added to the indexes – was the largest globally, a statement by New York-based MSCI showed. The changes, which will be made on Nov. 30, come amid a sharp economic downturn in Turkey following a currency crisis earlier this year.

Turkey’s main BIST-100 share index has lost 20 percent of its value in 2018. The losses exclude a decline of about a third in the lira’s value.

MSCI is a global provider of equity, fixed income and hedge fund market indexes, as well as multi-asset portfolio management tools.

Ratings agencies such as Standard & Poor’s and Moody’s have also removed Turkey from their list of investment grade countries and have cut its sovereign bonds deeper into junk territory as economic instability intensified.