While predictions about the commencement dates of central banks’ interest rate cuts worldwide are continually being pushed forward, a generally positive trend is evident in equity markets.
As indexes in the New York Stock Exchange continue to test historic highs, led by technology shares, interest in emerging market equity markets is also on the rise.
According to Bank of America’s data, there was a cash inflow of $20.8 billion into emerging market equity markets last week. This amount marks the highest weekly cash influx into emerging market equity markets in history.
CASH FLOWING INTO EMERGING MARKETS
Analysts note that Turkey has significantly benefited from these developments, emphasizing the increasing global interest in Turkish lira assets and its impact on asset performance.
When examining the weekly securities statistics data from the Central Bank of the Republic of Turkey (CBRT), it is observed that non-resident individuals have purchased a net of $498.4 million in equities and $319 million in Treasury Bonds (DİBS) in the last four weeks.
Analysts highlight the ongoing positive reports from foreign investment institutions regarding Turkish assets, stating that the economic measures taken by the government since the normalization process began after last year’s elections have fueled the risk appetite for Turkish lira assets.
With these developments, the BIST 100 index at Borsa İstanbul has outperformed major global indexes with a return of 21.1% since the beginning of the year, leaving its closest follower, Japan’s Nikkei 225 index, which increased by 10.3%, behind.
DOLLAR-BASED RISE CONTINUES IN THE STOCK MARKET
The BIST 100 index reached 294.5 points in dollar terms, testing its highest level since October 16.
On Friday, the BIST 100 index reached 9,045.97 points, achieving the highest daily and weekly closing in history. In dollar terms, the index rose to 294.5 points with a 16.2% increase, testing its highest level since October 16.
This year, the BIST 100 index saw an average daily trading volume of ₺97.9 billion. It reached its highest trading volume of ₺133.6 billion on February 7.
When sectoral indices are examined in detail, it is striking that all sectors have gained since the beginning of 2024. The top performer is the technology sector with a 56.6% increase, followed by tourism with 35.5%, and electricity with 29.7%. The banking index gained 12.5%, and the holding index increased by 27.1% during this period.
On a stock basis, of the stocks included in the BIST 100 index since the beginning of the year, 97 have appreciated, while 3 have declined.
COMPANIES DELIGHTING INVESTORS THIS YEAR
The top three companies delighting investors this year are Vestel Elektronik with a 76.5% increase, Akfen Renewable Energy with a 66.4% gain, and SDT Space and Defense with a 56% rise.
The three stocks that declined among those included in the BIST 100 index during this period are Qua Granite with a 25.4% decrease, Hektaş with a 9.2% loss, and Aksa Acrylic with a 4.5% decline.
Furthermore, according to data released by the Central Securities Depository (MKK), as of February 9, the number of investors with equity holdings reached 7.2 million, and the market value of equities reached ₺11.9 trillion, setting a record.
When examining the Risk Tendency Index (REKS) created by the MKK to measure risk appetite, as of February 2, the risk appetite of foreign investors was 64.3, and that of domestic investors was 63.1, with the overall risk appetite of all investors at 56.3.
With REKS above 50, it indicates a high risk appetite, while below 50 suggests a low risk appetite.
Nicosia