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Category: Financial Market

  • Private Advisor Group reels in new investor capital

    LPL Financial’s largest affiliated branch office, Private Advisor Group, said on Friday that Merchant Investment Management had taken a non-controlling minority stake in the firm.

    Merchant Investment Management is a private partnership that invests in growth companies and other opportunities. According to its website, Merchant Investment Management this year has focused on investing in the wealth management industry.

    It is the first outside investor for Private Advisor Group, which is based in Morristown, New Jersey, and has about 700 financial advisers with $30 billion in client assets. The firm recently has been ranked by Barron’s newspaper as a top ten RIA in the country.

    Terms of the deal were not released, but the firm’s CEO, Robert “R.J.” Moore, said in an interview Tuesday morning that Merchant was not buying existing shares from partners, but investing growth capital into the firm.

    That makes this type of investment different from private equity buyers, Moore said.

  • Turkey: Stock trading halted again due to rapid losses

    Turkish stocks extended their losses following Friday’s rout, prompting a fresh automatic trading halt after the lira slid to a record low.

    The Borsa Istanbul 100 Index tumbled 5%, after climbing as much as 3.1% earlier. Trading was set to restart at 4:23 p.m. Istanbul time, according to the bourse’s statement.

    This is the second session in a row that Turkish equities’ trading is halted due to rapid losses. The benchmark plunged as much as 9.1% on Friday, triggering automatic circuit breakers during the second-steepest selloff of the year. The slump was made worse by high levels of margin trading among local investors who have borrowed funds to join a recent rally in stocks.

    Calls on margins “led to snowballing losses” on Friday, turning a price correction into “panic selling,” said Tuna Cetinkaya, assistant general manager at the Info Yatirim brokerage.

    The lira’s 58% decline this year in the wake of 500 basis points of central bank rate cuts has sent local investors flocking to stocks to shield their savings, making Istanbul among the best-performing markets of 2021 in local currency terms, but the worst when measured in U.S. dollars.

    The lira tumbled to another record low on Monday after Turkish President Recep Tayyip Erdogan pledged to continue cutting interest rates, referring to Islamic proscriptions on usury as a basis for his policy.

    Discount grocer BIM Birlesik Magazalar AS underperformed, while telecom operator Turk Telekom was among the only four stocks that gained.