Business

Turkiye: The best performance of the last 13 years in the stock market

In Borsa Istanbul, the BIST 100 index broke a record after the record in August, when the global stock markets followed a negative course with the recession and inflation dilemma, and exhibited the best monthly performance of the last 13 years with a value gain of 22.33%.

Domestic markets diverged positively from the global stock markets, which was in a downward trend with the ongoing ultra-hawk monetary policies and increased recession risk.

In the rally led by bank stocks, which have been silent for a long time, a record-breaking record was broken in the BIST 100 index.

While the BIST 100 index rose by 22.33% to 3,171.21 points in August, the said performance was recorded as the strongest increase since April 2009 on a monthly basis. It also carried the index peak to 3.198.99.

The BIST 100 index, which completed August at 174.25 points with a 20.4% premium in dollar terms, thus achieved its highest closing since August 2021, and exhibited its best monthly performance since December 2020.

When the BIST 100 index is analyzed on the basis of sector indices, leasing and factoring provided the highest return with an increase of 63.1% in August, while mining was the only loser with a decrease of 1.65%.

While it is noteworthy that foreign investors’ interest in Borsa Istanbul increased in August, according to the Securities Statistics of the Central Bank of the Republic of Turkiye (CBRT), foreigners made the strongest purchase since November 2021, with a net purchase of $724 million in the 3 weeks between 29 July and 19 August.

After seeing the historically low level of 32.71% in August, the securities ratio of foreigners in Borsa Istanbul increased by about 2 points to 34.61%, and the 8-month downward trend came to an end.

Inflation, which reached record levels on a global basis, forced major central banks to an ultra-hawkish monetary policy stance, while the risk of recession in the USA and Europe continued to strengthen in August.

The strengthening of the expectations that the US Federal Reserve (Fed) and the European Central Bank (ECB) would raise interest rates by 75 basis points in the September meetings in the money markets supported the selling pressure in the stock markets.

In the New York stock market, the S&P 500 index fell 4.2%, the Nasdaq index 4.6% and the Dow Jones index 4.1% last month. In European stock markets, the FTSE 100 index decreased by 1.9% in the UK, the DAX index decreased by 4.8% in Germany, the CAC 40 index decreased by 5% in France and the MIB 30 index decreased by 3.8% in Italy.

BANKS BECOME A PIONEER

Bank stocks, which have a high weight in the BIST 100 index, made its investors smile last month and led the rally.

The banking index rose by 51.8% to 3,282.6 points in August, marking the strongest monthly performance since April 2001.

Last month, Sekerbank gained the highest value among bank shares with a return of 118.7%, while Akbank provided the least return with 35.8%. None of the bank shares lost their investors in August.

In August, Vakifbank gained 87.4%, Halkbank 77.7%, Garanti BBVA 58.4%, Turkiye Is Bankasi 51.7% and Yapi ve Kredi Bankasi 48.2%.

Among the sector indices with a return of 221.7% since the beginning of the year, the sector that gave the most to its investors in the first 8 months was transportation. While the transportation index continued to rise in August, it increased by 40.2% on a monthly basis.

Turkish Airlines and Pegasus shares, which make up approximately 95% of the transportation index, gained 45% and 24.30%, respectively, last month, while gaining 265.1% and 145.7%, respectively, to its investors since the beginning of the year.

When the BIST 100 index is analyzed since the beginning of the year, 95 shares have gained in value, 4 shares have lost value, and the price of a company has not changed.

Is Real Estate Investment Trust was the highest earning share since the beginning of the year with 496.7%, followed by Alarko Holding with 302.6% and Sekerbank with 270.3%. Akfen Real Estate Investment Trust was the biggest loser in the BIST 100 index since the beginning of the year with 58.1%.

Source: Haberturk / Translated by Irem Yildiz

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button