Even though predictions as to when central banks around the world will start cutting interest rates are shifting from day to day, the overall picture on the stock markets is positive.
As indices on the New York Stock Exchange continue to test their highest levels in history, led by technology stocks, interest in developing country stock markets is also increasing.
According to Bank of America data, equity markets in developing countries saw an inflow of $20.8 billion last week. This amount represents the highest ever weekly inflow of funds into developing country stock markets.
Analysts noted that Turkey has benefited significantly from these developments, stating that interest in Turkish lira-denominated assets is increasing in global markets and this is having an impact on the performance of the assets.
When the weekly securities statistics data from the Central Bank of the Republic of Turkey (CBRT) is examined, non-residents have acquired net holdings of $498.4 million and $319 million in domestic government bonds (GDBS) over the past four weeks.
Analysts stressed that positive reports from foreign investment institutions about Turkish assets continue, saying that economic management’s steps during the normalization process that began after last year’s elections increased risk appetite for Turkish lira assets.
With these developments, the Istanbul Stock Exchange’s BIST 100 index outperformed the world’s major indices with a year-to-date return of 21.1 percent, while its nearest rival, the Nikkei 225 index in Japan, gained 10.3 percent.
The BIST 100 index rose to 294.5 points in dollar terms, testing its highest level since October 16.
While the BIST 100 index hit 9,045.97 points on Friday, setting its highest daily and weekly close ever, the dollar-denominated index rose 16.2 percent to reach 294.5 points, testing its highest level since March 16 October.
This year, the BIST 100 index had an average daily transaction volume of 97.9 billion lira. It was observed that the index reached its highest transaction volume on February 7 at 133.6 billion lira.
If you look at the industry indices in detail, the growth in all sectors since the beginning of 2024 is noticeable, with IT taking first place at 56.6 percent. This was followed by tourism with 35.5 percent and electricity with 29.7 percent. During this period, the banking index rose by 12.5 percent and the holding index by 27.1 percent.
On a stock basis, it was found that 97 of the stocks included in the BIST 100 index achieved a premium year-to-date, but three of them recorded a decline.
The top three stocks that pleased investors the most this year were Vestel Elektronik, up 76.5 percent, Akfen Renewable Energy, up 66.4 percent, and SDT Aerospace and Defense, up 56 percent Percent.
During this period, the three stocks included in the BIST 100 index that recorded a decline were Qua Granite with a decline of 25.4 percent, Hektaş with a decline of 9.2 percent and Aksa Akrilik with a decline of 4, 5 percent.
On the other hand, according to the Central Registry Agency (MKK), the number of investors with a stock holding was 7.2 million as of February 9, while the stock market value broke a record at 11.9 trillion Turkish lira.
When examining the Risk Tendency Index (REKS) prepared by MKK to measure risk appetite, as of February 2, the risk appetite of foreign investors was 64.3 and the risk appetite of domestic investors was 63.1, while the risk appetite of all investors was 56.3 .
A REKS value above 50 indicates a high risk appetite; below this value it is interpreted as a low risk appetite.
“This is not the end, it could be the beginning of a new uptrend”
Stating that the increase that began with the New Year on the Istanbul Stock Exchange resulted in closes above 9,000 points in the BIST 100 index, A1 Capital Deputy General Director Üzeyir Doğan said, “Despite the recent increase in the index, believe “We believe that this may not be the end but the beginning of a new uptrend.” has given his assessment.
Explaining that the fact that BIST remained excessively discounted and, in particular, the balanced exchange rate movement encouraged foreign investors to buy, Doğan contributed greatly to this increase, saying:
“We expect Borsa Istanbul’s continued discount, both relative to historical averages and peers, to continue to push to new highs throughout the year. With this recent increase, 8,500 points represents strong support for the index and we believe that the 10,000 points first target will be the level that we predict will be psychologically important.”