ISTANBUL, March 12 (Reuters) - Turkish markets opened stronger on Friday, supported by a successful 11-year bond issue a day after the government ended talks with the International Monetary Fund without signing a stand-by deal.
The Treasury on Thursday sold $1.0 billion of 11-year bonds, with Bank of America Merrill Lynch, Barclays and RBS as the joint lead managers on the sale.
The 5.625 percent bonds were priced at 98.986 to yield 5.75 percent, or 202.7 basis points over comparable U.S. Treasuries. Traders pointed that this was the lowest cost ever achieved by Turkey and the bond has attracted an orderbook of approximately five times the issue size.
"The issue was five times oversubscribed, so the lack of an IMF anchor appears not to have had a negative effect," Finansbank said in a note.
The main share index traded up 0.87 percent to 52,834.77 points after a three-day losing streak, outperforming the MSCI emerging markets index, which rose 0.31 percent.
The lira firmed to 1.5265 against the dollar from the previous day's 1.5330 on the interbank market. The yield on the benchmark Nov. 16, 2011 bond fell to 9.19 percent from the previous day's 9.24 percent.
"The lira is still holding relatively solidly in the 1.45-1.55 range it has settled in since July last year; currently at 1.53, and held in now by rising local rates/expectations of hikes, plus the success of the recent new dollar issue," said Timothy Ash of Royal Bank of Scotland.
Conglomerate Koc Holding's stock was flat at 4.76 lira after chief executive Bulent Bulgurlu said 2010 operating profit was seen up 34 percent to 4.7 billion lira and total sales seen up 18 percent.
Koc announced on Friday that its 2009 net profit sank 29 percent to 1.429 billion lira on the final day for Turkish companies to disclose their 2009 earnings. (Reporting by Selcuk Gokoluk; editing by Ron Askew)