Shares in Gülen-linked companies plunge after police raids

ISTANBUL

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Shares in leading companies owned by Koza İpek Holding, a corporation linked to the Turkish government’s ally-turned-nemesis Fethullah Gülen, tumbled more than 15 percent yesterday after media reported that police had raided the group’s companies.

State-run Anadolu Agency reported yesterday that the raid targeted 23 companies of the corporation over “giving financial support to the Fetullahist Terror Organization (FETÖ) and conducting its propaganda.”

Police seized documents and computers found at the companies, the report stated, adding that Koza İpek Chairman Akın İpek was thought to be abroad at the time. The company denied the claim.

Shares in the group’s Koza Altın tumbled 19.26 percent yesterday, while shares in Koza Madencilik slid 17.94 percent. İpek Doğal Enerji shares fell 14.61 percent. Overall, the Borsa Istanbul fell by 2.18 percent Sept. 1. 

The operation against the Koza-Ipek group added to the worries of investors already rattled by political uncertainty and a surge in fighting between Turkish security forces and Kurdish militants.

“There is a risk that this sort of thing can intensify into the election and it really is underscoring the weak investment climate within Turkey,” said Manik Narain, emerging markets strategist at UBS, as quoted by Reuters.