* Lira firms, 2-yr bond yields hit record low
* Shares just above flat
* Industrial output up 6.2 pct y/y, well above f'cast
By Seltem Iyigun
ISTANBUL, Nov 8 Turkey's lira inched higher and
bond yields hit record lows on Thursday, still drawing support
from the award of an investment grade credit rating this week as
investors kept a wary eye on events on its border with Syria.
Better than expected industrial output on Thursday was fresh
evidence of the solid economic performance which stood behind a
Fitch Ratings upgrade that should begin to draw in a new class
of investor into Turkey.
That drove the lira to its strongest since May, at 1.7693 to
the dollar, but it turned back later on Wednesday on a poor
global sentiment and reports Turkey was planning to ask NATO to
site Patriot missiles on the border.
By 0913 GMT on Thursday, the lira had recovered
again to firm to 1.7804 to the dollar from 1.7835 late on
Wednesday. Against the euro-dollar basket, it
strengthened to 2.0268, from 2.0296.
"Data such as PMI, net capital inflows and the recovery in
the imports suggest that the economy has restarted to grow at a
higher rate. The worst quarter for the economy is left behind,"
wrote Gizem Oztok Altinsac, economist at Garanti Securities.
"We expect growth at 4 percent in 2013. If capital inflows
are higher then our forecast, growth can be higher."
Turkey's central bank, however, remains firmly in easing
mood and the yield on Turkey's two-year benchmark bond
fell to an all-time low of 6.78 percent, from
Wednesday's close at 6.85 percent, helped by the rating move.
Istanbul's main share index was 0.23 percent up at
71,768 points, outperforming a 0.89 percent fall in the global
emerging markets index.
Investors were awaiting announcements on third quarter
results from lenders Akbank, Vakifbank and
the carmaker Tofas, due later in the day.
Analysts at Ekspres Invest said that global concerns over
growth would continue to weigh on the exchange, seeing support
for the index at 71,000 and resistance around 72,500.
(Writing by Seltem Iyigun; editing by Patrick Graham)