ISTANBUL, Dec 7: Turkish bonds weakened slightly amid profit-taking on Friday while shares and the lira drifted sideways, pausing for breath after gains driven by positive diplomatic news and hopes for IMF loan talks.

Trading volumes in the bond market continued to ease from Wednesday’s record levels while bond yields rose.

Average yields on the July 10, 2002, debt paper stood at 75.49 per cent on the secondary market, up around half a percentage point from Thursday’s close but down from Tuesday’s issue level of 77.95 per cent.

The lira was quoted at around 1,452,000/1,456,000 on the independent interbank market, little changed from its closing level on Thursday.

The main Istanbul National-100 index closed the morning 0.14 per cent higher at 12,705.52, up 18.23 points from Thursday when it surged 6.34 per cent to its highest close since May 18.

Telecoms group Turkcell fell two per cent, wiping 16 points off the index, while shares in private bank Is Bankasi ended the morning 1.41 per cent higher at 7,200 lira and was the busiest share.

There was strong buying yesterday. The rise over two days came to around 12 per cent. It is normal for the market to consolidate after such a move, said Sedat Ali Eratac of OB Securities.

Turkish Airlines rose 1.35 per cent after reporting a nine-month profit.

Korhan Sezer, domestic sales manager at Bayindir Securities, said most investors were upbeat for the mid-term after a World Bank team on Thursday joined an IMF delegation in Ankara for talks for an expected $10 billion standby pact.

The World Bank said on Friday it had loaned Turkey $3 billion under its present economic pact and would provide the same level of support in 2002.—Reuters