ISTANBUL, Oct 8 (AFP) - Shares at the Turkish stock exchange hit a new all-time high Friday, riding a wave of optimism on increased hopes of starting membership talks with the European Union, analysts said.
The national index of the Istanbul stock exchange gained 519 points, or 2.31 percent, to close the day at a record 22,951 points, up from the previous record of 22,432 points on Thursday.
The index has been on the rise since Wednesday, when the European Commission recommended that the EU start accession talks with Turkey, saying the country had fulfilled the required democractic criteria.
The commission's recommendation dispels lingering doubts among investors' at a time when macroeconomic indicators are good, Batuhan Ozsahin from Global Securities told AFP.
"Markets were concerned by two issues," Ozsahin said. "The other one was the International Monetary Fund, but we already had the signal that the government would seek a new stand-by deal.
"The commission's report is positive. It is a good signal that Turkey will undergo a complete structural change in the transition period towards EU membership," he said. "As long as there is no negative development, I expect the index to (continue to) move upwards."
EU leaders meet on December 17 to make the final decision on whether to invite Ankara to the negotiating table.
Investors believe a favorable decision would be a huge boost for the Turkish economy, which is emerging from a severe financial crisis that began in 2001 with financial assiatnce from the IMF, and help the country attract vital foreign investment.