THE FAILED PUTSCH IN TURKEY / AFTER THE ATTTEMPTED COUP The Istanbul Stock Exchange dropped over 8%

The Istanbul Stock Exchange had a downward trend yesterday, as is major index lost over 8% following Friday's attempted coup.

The most affected stocks were those in the tourism sector, included in the Borsa Istanbul 100 index, which fell over 8.6%, to 75.733,44 points, at 17:00 local time. Shares of airport operator "TAV Havalimanlari Holding" AS fell 20%, to 10.66 lira, and those of "Turkish Airlines" - 17%, to 4.92 lira. Shares of "Turk Telekomunikasyon" AS fell 5.5%, to 6.21 lire.

Since the beginning of the year and until Friday, before the attempted coup, the Borsa Istanbul 100 index had risen almost 15%.

There are currently concerns that the recent events might affect the industry of tourism in Turkey, which is crucial to the economy, according to BBC. The British news agency informs that already in May, the number of visitors to Turkey was 35% lower over the similar period of 2015, following some security incidents.

Salman Ahmed, chief-strategist of Swiss asset manager "Lombard Odier", states: "Given the sudden increase of political instability and Turkey's extremely vulnerable foreign profile, which will apparently worsen as tourism gets affected in the future, we believe that Turkish assets will remain under pressure". Ahmed has stressed that already, Turkey is considered a vulnerable market among emerging economies.

According to the World Bank, Turkey's economy will rise 3.5% in 2016, compared to 4.5% last year.

The country's current account deficit is a problem, the BBC notes. In 2015, it amounted to over 32 billion dollars, 4.5% of the GDP, respectively, and will continue to deteriorate due to the expected tourism decline.

• The lira rose over 2%

The Turkish lira yesterday rose compared to the American dollar, as the Turkish government regained control over the country, after the failed coup. Thus, investors' concerns over political uncertainty and geopolitical risk have decreased.

Furthermore, Turkey's central bank has pledged, during the weekend, to supply unlimited liquidity to allow Turkish commercial banks to reassure investors concerning the solidity of the banking system.

The lira has risen over 2% in the first half of the day, to 2.9575 units/dollar, after dropping almost 5% on Friday, the biggest drop since October 2008. Later, (yesterday), the lira had an exchange rate of 2.9811 units/dollar, up 1.2% over Friday.

Turkish deputy prime-minister Mehmet Simsek said yesterday that the impact of the attempted coup on Turkey's economy will be temporary, given the solid macroeconomic foundations.