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Turkey: The financial assets of the domestic investors exceeded ₺5.8 trillion

As of the end of July, the financial assets of domestic investors increased by ₺1 trillion in the last 1 year and exceeded ₺5.8 trillion. ₺500 billion of the increase has occurred in the 4 months since the end of March. In this period, the increase in TL deposits exceeded ₺200 billion.

In the last 1.5 years spent in the shadow of the pandemic, the rapid recovery in the economy, global developments and expectations for the coming period have caused significant changes in the investment preferences of domestic residents. According to the data of the Turkish Capital Markets Association (TSPB), the financial assets of domestic residents increased by ₺1 trillion in the last year as of the end of July, reaching the highest level in its history with ₺5 trillion 831 billion.

INCREASED ₺500 BILLION IN 3 MONTHS

The second quarter of the year was the period in which both the growth and the transition to TL in the financial assets of domestic residents accelerated. The economic growth, which will be announced on September 1 and expected to be between 25-30%, was also reflected in the preferences of investors for the second quarter of the year. According to TSPB data, financial assets of domestic residents increased by more than ₺500 billion in the second quarter of the year. In other words, half of the ₺1 trillion increase in the last 1 year was realized in the second quarter of this year.

TRANSITION TO TL ACCELERATED

It was noted that in the second quarter of the year, when financial assets grew rapidly, the transition to TL also accelerated. According to the data, TL deposit volume, which was ₺1 trillion 515 billion at the end of March this year, increased to ₺1 trillion 716 billion at the end of July. In this period, the increase in TL deposits was ₺201 billion. Increase in interest rates, withholding tax cuts and optimistic expectations for the upcoming period enabled domestic investors to return to TL. The share of TL deposits in the total increased to 29.5%. At the end of March, the share of foreign exchange deposits fell to 34.6%, while in July it fell to 33.7%.

INTEREST IN THE EXCHANGE CONTINUES

The interest in Borsa Istanbul, where records were broken in public offerings and the number of domestic investors, continues despite losing momentum. The number of domestic investors in the stock market, which was 1 million 606 thousand in July 2020, reached its historical peak with 2 million 661 thousand in April this year. The number of domestic investors, which declined after this date, reached 2 million 394 thousand people at the end of July. Despite the recent decline, as of the end of July, the number of domestic investors who came to the stock market in the last 1 year was 788 thousand. The size of the domestic investor’s stock portfolio, which was ₺273.5 billion in July 2020, went up to ₺418.1 billion in March this year and decreased to ₺396 billion in July.

PUBLIC OFFER RECORD WAS BROKEN

This year’s record public offerings were effective in the increase in the number of domestic investors in Borsa Istanbul. In 2021, 32 companies offered their shares to the public and generated ₺14.6 billion in revenue. The demand for these public offerings was ₺96.2 billion. With the completion of the share sale of Nasmed, YEO Teknoloji and Orcay within a week, the number of public offerings will reach the record level in 2020 with 35.

HIGHEST REAL INCOME WAS IN DIBS IN JULY

When reduced with the Consumer Price Index (CPI), the highest monthly real return in July was realized in Government Domestic Debt Securities (GDDS) with 0.11%. When it is reduced with the CPI, the deposit interest (gross) was 0.52%, the dollar was 1.8%, the gold bullion and euro was 3.55% and the BIST 100 index was 5.14%, which made its investors lose. In the quarterly evaluations, gold bullion was recorded as the investment instrument that provided the highest real return to investors by 3.53% when reduced by CPI. According to the six-month evaluation, the dollar provided the highest real return to its investors with 7.22% when it was reduced with the CPI. When financial investment instruments are evaluated annually, the euro provided the highest real return to its investors with 9.34% when it was reduced by CPI.

PORTFOLIO MANAGEMENT COMPANIES MANAGE ₺445 BILLION

The portfolio size of the portfolio management sector, which was ₺347.7 billion as of the end of June last year, increased by 28% to reach ₺445.6 billion at the end of June this year. According to TSPB data, the total portfolio of ₺364.6 billion as of the end of 2020 increased by 22% in the first six months of the year with the effect of the rapid growth in mutual funds. According to the data, a total of 1,203 mutual funds, of which 395 are pension funds and 808 are securities, are managed by portfolio management companies.

Of the total portfolio managed by portfolio management companies, reaching ₺445.6 billion as of the end of June ₺395.4 billion consists of collective portfolios, while ₺51.2 billion consists of individual portfolios of real and legal persons. Investment funds, which were ₺164.2 billion in June 2020, increased by 28% and reached ₺209.6 billion as of the end of June this year. Mutual funds, which declined in the second half of 2020 and fell to ₺151.9 billion at the end of the year, experienced a rapid growth of 38% in the first six months of this year. The number of real and legal investors, to which portfolio management companies provide individual portfolio management services, increased by 676 people compared to the end of 2020 and reached 3,780 as of the end of June this year.

Source: Sabah / Translated by Irem Yildiz

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