urkey's AK party faces a challenge to form a government after losing its majority at a general election for the first time in 13 years.

It secured 41%, a sharp drop from 2011, and must form a coalition or face entering a minority government.

The pro-Kurdish HDP crossed the 10% threshold, securing seats in parliament for the first time.

The Turkish lira and shares dropped sharply on Monday morning as markets reacted to the news.

The Turkish currency fell to near-record lows against the dollar, and shares dropped by more than 8% soon after the Istanbul stock exchange opened.

The central bank acted quickly to prop up the lira by cutting the interest rate on foreign currency deposits.

The election result is a blow to President Recep Tayyip Erdogan's plans to boost his office's powers.

He first came to power as prime minister in 2003 and had been seeking a two-thirds majority to turn Turkey into a presidential republic.

Prime Minister Ahmet Davutoglu said: "The winner of the election is again the AKP, there's no doubt."

But he added: "Our people's decision is final. It's above everything and we will act in line with it."

The HDP's supporters were jubilant, taking to the streets to chant "we are the HDP, we are going to the parliament".

"It is a carnival night," 47-year-old Huseyin Durmaz told AFP. "We no longer trust the AKP."

HDP leader Selahattin Demirtas ruled out entering into a coalition with the AKP.

"The discussion of executive presidency and dictatorship have come to an end in Turkey with these elections," Mr Demirtas told a news conference in Istanbul.
(BBC)