Turkish shares hit year-high on 2002 hopes
ISTANBUL, Dec 27 (Reuters) - Positive expectations for the New Year boosted Turkish shares by four percent to a 2001 high on Thursday amid signs of recovery in Turkey's crisis-hit banking sector and hopes for a new standby deal with the IMF.

Brokers said expectations of an influx of foreign cash on a government commitment to reforms which are key to $10 billion in fresh IMF lending had provoked buying.

Market-heavy commercial bank Garanti Bankasi topped the actives list, rising 8.7 percent to 2,500 lira after data released by Turkey's banking watchdog this week indicated the sector was recovering from February's financial crisis.

"The rise is a move by local investors amid expectations of foreign investment in the New Year," said Cem Marti at Ata Investment in Istanbul.

The main National-100 index ended up 4.14 percent at 13,608.99 points, building on the three-percent gains of the previous two trading days.

Turkey will receive some $16.5 billion in 2002-2004 from the IMF, including a new $10-billion standby accord expected to be signed in January, to support its crisis-hit economy, government officials said on Wednesday.

Markets have been buoyed in recent days after the government announced it would pass key reforms of privatisation and public procurement by January 15.

Gains were spread across the board as 236 of 287 traded shares ended higher while 19 declined and 32 closed unchanged. Daily turnover rose to 660.17 trillion lira (around $460 million) from Wednesday's 473.1 trillion lira.

The market will be closed for the New Year holiday on Monday and Tuesday, making Friday the last trading day of 2001. Transactions made on Friday will be settled next Thursday.