Turkey has the highest amount of share purchase from foreign investors
The BIST 100 Index in Borsa Istanbul displayed its best performance in eight months with an increase of 5.68 per cent in August. The net purchase of $478 million of stocks by foreigners last month was influential in this performance.
Despite the improvement of developed countries’ central banks, foreign interest in Turkish assets increased, and foreign investors purchased $478 million last month, the highest amount since December 2020. That means foreign investors have chosen to invest in Turkey. Since the beginning of the year, foreigners have been net sellers in stocks and made net sales of $1.404 billion as of August. The recent stable course and relatively low prices in Turkish lira assets played a vital role in increasing foreign purchases in the stock market.
THE CENTRAL BANK OF THE REPUBLIC OF TURKEY'S TIGHT STATUS MESSAGE ON MONETARY POLICY HAS BEEN EFFECTIVE
The Central Bank of the Republic of Turkey renewed its tight stance message regarding monetary policy, revealing the carry trade opportunity in the Turkish lira. Analysts noted that this situation may have increased the demand for stocks. However, analysts also noted that Borsa Istanbul is quite discounted when viewed in dollar terms, stating that it is far from its previous peaks and has a high technical return potential.
Garanti BBVA shares became foreign investors' favourite. While approximately one-third of the said purchases in August were made in Garanti BBVA, foreigners made a net purchase of $149 million in this stock. Garanti BBVA was followed by Şişecam with $110 million, BİM United Stores with $75 million, Tofaş Automotive with $62 million, and Akbank and Koç Holding with $42 million.
"VACCINATION PROCESSES AND ECONOMIC GROWTH PROVIDED ADVANTAGE"
Recalling that the share of foreigners in Borsa Istanbul fell to its historically low level of 42 per cent, the analysts noted that the progress achieved in vaccination efforts during the coronavirus epidemic and the growth momentum in economic activity is an advantage for Turkish lira assets. Analysts stated that most of the companies that traded in Borsa Istanbul had a positive second quarter and noted that the share-based purchase proposals of some foreign investment institutions were also met with remarkable results.