Water cannon producer’s stock dips after Turkey’s ruling AKP loses majority

ISTANBUL

DHA Photo

The largest supplier of police water cannons in Turkey has seen a steep fall in its stock prices, hours after the ruling Justice and Development Party (AKP) lost its parliamentary majority.

Shares in Katmerciler Ekipman, the company that manufactures the riot control vehicles popularly known as TOMAs, decreased 10 percent early June 8. 

The fall was worse than the average decline in Borsa Istanbul stock prices, which saw a fall as low as 8.15 percent in its opening following the June 7 general elections.

Since its IPO in 2010, the İzmir-based company’s stock prices have seen steep hikes each time it won public tenders to produce new TOMAs.

In October 2014, Katmerciler saw its operating profits skyrocket by 229 percent, up to 7 million Turkish Liras from 2.1 million, with the Turkish government’s purchase of scores of new TOMAs. Prime Minister Ahmet Davutoğlu had said the government “would buy 10 new TOMAs for each one destroyed” by ongoing street protests in the country.

The company, which is owned by a former AKP deputy, İsmail Katmerci, emerged as one of the biggest winners from the nationwide Gezi Park demonstrations in 2013.

Katmerciler’s trademark TOMAs gained such international fame during the police crackdowns on protests that the company was able to enter a number of new markets, including Brazil and Libya.

Currently, Turkey is debating coalition possibilities after the ruling AKP failed to reach the bare minimum of seats in parliament to form a single party government following the election.