Turkey's Erdogan may fall short of super-majority, some analysts skeptical

Turkey's main political party unexpectedly swept to power over the weekend but appeared to have fallen short of the 'super-majority' needed to give its often criticised president, Recep Tayyip Erdogan, new constitutional powers.

The latest vote count showed the ruling Justice and Development Party (AKP) made off with 49% of the ballots cast, giving it 316 MPs at the parliament in Ankara.

Another vote in June had left the AKP short of the majority needed to govern alone and broke the party´s 13-year long streak in power. New elections were called after failed attempts to form a viable coalition.

Financial markets reacted positively, with the benchmark Borsa Istanbul 100 Index rising by 5.34% to 84,648.44 as of 13:02BST and the US dollar 3.6% weaker versus the Turkish lira at 2.81.

Nonetheless, some experts were more skeptical.

"The relief rally in Turkish markets is likely to fizzle out before long as it becomes clear that the AK Party will deliver more of the same [...] a fragile Lira will eventually force interest rates higher and underpin a poor performance by local currency bonds," analysts at Capital Economics said in a research note sent to clients.

Although in the recent past Erdogan has been criticised from many corners as being worryingly autocratic, some initial market commentary was positive, emphasising the need for stability in Turkey given the unrest in Syria and the resulting migrant crisis.

Erdogan had been campaigned openly in favour of being given a so-called 'super-majority´in parliament which would grant him greater powers as an executve president, along the lines of the French and US political systems.

For that Erdogan, who ruled for 13 years as prime minister before being elected president in August 2014, needed 330 seats in Ankara.

The resumption of hostilities between Kurdish militants and the state, including a recent terrorist attack on 10 October, at a peace rally in Ankara that claimed 100 lives may have played a hand in Sunday´s election results.