UPDATE 3-Turkish lira falls 1.5 pct, Migros rises

(Updates with closing figures)

ISTANBUL, Feb 11 (Reuters) - Turkish stocks fell 1.5 percent on Monday along with the lira, hit by weakness in global markets, while Migros MIGRS.IS rose 1.57 percent after its parent said it was close to selling the firm.

At 1000 GMT the lira <IYIX=> closed at 1.2220, 1.5 percent weaker on the previous interbank close. It softened further to 1.2310 in after-hours trade.

The yield on the Oct. 7, 2009 benchmark <TRTSYSUM=IS> rose to 16.92 percent from Friday's 16.62 percent and the main stock index .XU100 fell 1.47 percent to 41,342.84 points, adding to losses of 24 percent seen so far this year.

A broker said the index might fall below 41,000 points if overseas markets deteriorate on Tuesday.

Turkish stocks have fared worse than emerging shares overall .MSCIEF this year, as a stellar performance in 2007, a liquid market, heavy foreign ownership and a large current account gap have made the market more vulnerable to a global sell-off.

Shares in retailer Migros rose 1.57 percent after parent Koc Holding KCHOL.IS said talks over the sale of its controlling stake in the supermarket chain were at the final stage, although no deal had been signed.

Investors said the stock was rising as the deal was expected to close soon, although one analyst said that if a Croatian press report saying the deal valued the firm at $3.2 billion was confirmed, shareholders could be disappointed. [ID:nL11664299]

"Anyone who wants to be in the name is already in and everyone else is waiting for some concrete news," said one Istanbul trader.