Borsa Istanbul Stock Exchange Continues to Break Records

The BIST 100 index on the Istanbul Stock Exchange continues to lead globally in terms of returns since the beginning of the year and maintains its record levels.

Despite the ongoing postponement of predictions about when central banks worldwide will begin interest rate cuts, a generally positive outlook affects stock markets.

While indices in the New York Stock Exchange continue to test historic highs, especially in technology shares, interest in emerging market stock markets is also increasing.

According to Bank of America’s data, there was a cash inflow of $20.8 billion into emerging market stock markets last week. This amount indicates the highest cash inflow into emerging market stock markets on a weekly basis.

Analysts noted that Turkey has significantly benefited from these developments, stating that there is an increasing interest in Turkish lira assets in global markets, and this is affecting the performance of these assets.

When the weekly securities statistics data of the Central Bank of the Republic of Turkey (CBRT) are examined, it is observed that non-residents in Turkey bought a net $498.4 million worth of stocks and $319 million worth of Treasury Bonds (DIBS) in the last 4 weeks.

Analysts also emphasized that positive reports on Turkish assets from foreign investment institutions continue, stating that the steps taken by the economic administration in the normalization process that started after last year’s elections have fueled the risk appetite for Turkish lira assets.

With these developments, the BIST 100 index in Borsa Istanbul has outperformed the world’s major indices with a return of 21.1% since the beginning of the year, leaving its closest follower, the Nikkei 225 index in Japan, which increased by 10.3%, behind.

The BIST 100 index rose to 294.5 points in dollar terms, testing its highest level since October 16th. The BIST 100 index reached 9,045.97 points on Friday, achieving the highest daily and weekly closing in history. When viewed in dollar terms, the index reached 294.5 points, an increase of 16.2%, testing its highest level since October 16th.

This year, the BIST 100 index had an average daily trading volume of 97.9 billion Turkish liras. It was observed that the index reached its highest trading volume of 133.6 billion liras on February 7th.

When sector indices are examined in detail, it is striking that all sectors have gained since the beginning of 2024. The information sector took the lead with 56.6%, followed by tourism with 35.5%, and electricity with 29.7%. The banking index gained 12.5%, and the holding index gained 27.1% during this period.

On a stock-by-stock basis, out of the stocks included in the BIST 100 index since the beginning of the year, 97 gained in value, while 3 declined.

The top three stocks that pleased investors the most this year were Vestel Elektronik with a 76.5% increase, Akfen Renewable Energy with a 66.4% gain, and SDT Space and Defense with a 56% increase.

The three stocks that declined in the BIST 100 index during this period were Qua Granite with a 25.4% decrease, Hektaş with a 9.2% loss, and Aksa Acrylic with a 4.5% decrease.

On the other hand, according to the data announced by the Central Securities Depository (MKK), as of February 9th, the number of investors with equity shares reached 7.2 million, and the market value of equity shares reached 11.9 trillion Turkish liras, breaking a record.

When the Risk Appetite Index (REKS), created by the MKK to measure risk appetite, is examined, as of February 2nd, the risk appetite of foreign investors is 64.3, and the risk appetite of domestic investors is 63.1, while the risk appetite of all investors is 56.3.

Üzeyir Doğan, Deputy General Manager of A1 Capital, commented to AA news agency, stating that the rise that started in Borsa Istanbul with the new year has begun to bring closings above 9,000 points to the BIST 100 index and evaluating it as not the end of the latest rise but possibly the beginning of a new rising trend.

Dogan emphasized that the excessive discount of BIST and the balanced trend in foreign exchange rates, especially in encouraging foreign investors to buy, contribute significantly to this rise, stating: “We think that the discount of Borsa Istanbul, both historically and compared to its peers, will continue to bring new highs throughout the year. With this latest rise, we expect the psychologically important 10,000-point level, which is a strong support for the index, to be the first target.”

source: / prepared by Melisa Beğiç

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