Turkish stock market hits record high as EU membership in reach

ISTANBUL, Dec 17 (AFP) - The Istanbul stock exchange, confident that Turkey would agree a deal with the European Union Friday on its bid to join the bloc, soared to a record high close for the second day in a row.
The benchmark index IMKB-100 gained 425.43 points, or 1.78 percent, to close at 24,360.63 points.
Leaders of the 25-state EU announced overnight their offer to begin accession talks with the Muslim-majority country on October 3, 2005.
But the offer came with the proviso that Turkey relent on a decades-old policy of refusing to recognize the Greek Cypriot government. Anakara has instead recogonized the breakaway Turkish Cypriot administration in northern Cyprus.
Late in the day Friday European Union leaders struck a deal securing Turkish promises on the divided island of Cyprus in return for Ankara winning the historic prize of a start to EU entry talks.
In the morning trading session in Istanbul, the IMKB-100 lost 188.06 points before rebounding strongly as Turkish media reports signaled that the EU and Turkey were in the process of reaching a deal on Cyprus.
The previous all-time closing high was recorded Thursday, when the IMKB-100 finished the day at 23,935.20 points.

12/17/2004 15:52 GMT - AFP