ISTANBUL, Jan 25 (Reuters) - Turkish shares fell back from record high on Friday, led by a sell-off in banking shares and a fall in Turkcell after the company's founding shareholder applied to sell a stake on the stock exchange.
The main Istanbul share index closed down 1.95 percent at 84,755 points, underperforming a fall of 0.42 percent in the global emerging markets index. The market hit its highest ever level on Thursday.
The fall was driven by a 3.36 percent decline in banking shares and a fall of 2.04 percent in Turkey's largest mobile phone operator Turkcell to 12 lira, after its founding shareholder MV Holding applied to regulators to sell shares worth 318.7 million lira.
"Banking shares have risen for a year. This year the banks' net interest margins will be lower than in 2012 and the last year's sharp decline in the bond yields will not happen again in 2013," said Cem Tozge, asset management director at Ata Invest.
"This will affect the banks' fixed-income portfolios and their financial results will be lower compared with 2012," he added.
Turkish banking shares rose around 65 percent last year. Since the start of 2013, they have gained 13.7 percent.
The yield on the two-year benchmark bond closed at 5.88 percent, from Thursday's close at 5.84 percent.
By 1555 GMT, the lira was firmer at 1.7651 to the dollar, from 1.7705 late on Thursday. Against its euro-dollar basket it eased to 2.0720, from to 2.0685. (Writing by Seltem Iyigun)