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Technology-Weighted Funds Bring High Returns to Investors on Istanbul Stock Exchange

As the BIST 100 index continues to break records on the Istanbul Stock Exchange, the first two months of the year have witnessed significant gains in technology funds, following the historical peak of the technology index in tandem with the BIST 100 index.

Despite the ongoing uncertainty about when central banks worldwide will start cutting interest rates, stock markets are reaching historic highs. Particularly, the performance of technology stocks in indices on the New York Stock Exchange has drawn attention. Last week, the announcement of higher-than-expected profits by California-based chip manufacturer Nvidia further increased risk appetite in global equity markets.

Analysts suggest that technology companies operating in the semiconductor chip and artificial intelligence sectors, led by Nvidia, are expected to continue influencing market trends in the coming periods.

With these developments, the BIST 100 index, reaching a historic peak of 9,450.48 points, has outperformed major global indices with around 22% returns since the end of last year.

The technology index, which gained nearly 70% since the beginning of the year, also reached a historical peak of 17,031.65 points. Analysts note that there is an increasing interest in Turkish assets in global markets, and this trend is affecting the performance of these assets.

Foreign investment firms continue to release positive reports on Turkish assets. Analysts emphasize that the steps taken by the economic management during the normalization process that started after last year’s elections have fueled risk appetite for Turkish lira assets.

Recent increased interest in Turkey’s foreign borrowing auctions has contributed to a decrease in borrowing interest rates and an extension of maturities, boosting confidence in the economic program and attracting investor interest.

HSBC also stated that with the central bank’s shift towards a more traditional approach to monetary policy, “carry trade” dynamics have become supportive for the Turkish lira (TRY).

Looking at the performance of funds with a focus on technology stocks compared to the beginning of the year, the fund with the highest increase is the Ak Portföy Technology Companies Equity Fund (Equity Intensive Fund) with a rise of 84.2%.

The İş Portföy BIST Technology Weighted Limited Index Equity Fund (Equity Intensive Fund) provided investors with a gain of 80.7%.

Following these funds are the Yapı Kredi Portföy BIST Technology Weighted Limited Index Equity Fund (Equity Intensive Fund) with 72.3%, and the Deniz Portföy Technology Companies Equity Fund (Equity Intensive Fund) with 50.9%.

Performance of technology-weighted funds in the first two months of the year:

  • Ak Portföy Technology Companies Equity Fund (Equity Intensive Fund): 84.2%
  • İş Portföy BIST Technology Weighted Limited Index Equity Fund (Equity Intensive Fund): 80.7%
  • Yapı Kredi Portföy BIST Technology Weighted Limited Index Equity Fund (Equity Intensive Fund): 72.3%
  • Deniz Portföy Technology Companies Equity Fund (Equity Intensive Fund): 50.9%

source: aa.com.tr/ prepared by Melisa Beğiç

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