UPDATE 1-Turkish markets firm, supported by global gains

(Updates with closing prices)

ISTANBUL, Feb 21 (Reuters) - Turkish stocks and the lira firmed on Thursday as investors looked to the completion of state cigarette producer Tekel's privatisation and renewed political uncertainty.

The main share index .XU100 closed up 1.24 percent at 46,446.64, underperforming the MSCI emerging market stocks index .MSCIEF, which was 1.5 percent ahead at 1511 GMT.

A strong performance in European markets helped sentiment after the Federal Reserve cut its growth forecasts, rekindling hopes for further rate cuts in the United States, analysts said.

"The rise is associated with international markets and the trend in European markets is driving us on the upside. Tomorrow or next week the Tekel privatisation might be finalised and that could help with sentiment," said Yurdal Yalman, head of research at Oyak Securities.

Business daily Referans said on Monday a sale price of $1.5 billion to $1.8 billion was expected. Broker JP Morgan valued Tekel last year at $1.0-1.6 billion.

Four groups bid earlier this week for Tekel.

Despite delays, Turkey has scheduled a number of privatisations for 2008 and 2009, including electrical grids and an initial public offering for landline operator Turk Telekom.

Among shares in focus, textile-to-mining company Ceytas CYTAS.IS rose 13.18 percent and Park Elektrik PRKTE.IS gained more than 5 percent after a newspaper said Ciner planned an energy partnership with Germany's RWE (RWEG.DE: Quote, Profile, Research).