Saturday 25th October 2014,
Turkish Market News

Turkish Stocks: Volatility and Returns

Turkish Stocks: Volatility and Returns

It recently has been with full of ups and downs in almost all financial markets. Dips and spikes certainly should have thrown many investors for a loop. As expected it has been the same in Turkish markets. After hitting the top over 80,000 at the end of August, the benchmark stock index fell by roughly [...]

October 21, 2014 Oguz Erkol Equities 0

Why Foreign Portfolio Flows Matter

Why Foreign Portfolio Flows Matter

In every emerging market, the capital flows from developed countries have the ability to determine the direction which asset prices move into. Particularly, in Turkish stock market where the foreign investors hold roughly 65% of total assets have strong influence on returns. To this extent, the chart above show the net weekly transactions by non-residents in [...]

October 16, 2014 Oguz Erkol Equities 0

The Behavior of Current Account in Turkey

The Behavior of Current Account in Turkey

Turkey today posted better than expected current account deficit after naming the deficit as the second most important economic challenge after inflation in its Medium Term Plan. According to the posted official figures the deficit in August was $2.77 billion which is well below the market consensus of $3.2 billion. The country’s deficit for the [...]

October 16, 2014 Oguz Erkol Macro View 0

The Impact of Credit on Turkey’s Growth

The Impact of Credit on Turkey’s Growth

Credit impulse is an economic measure first introduced by Deustche Bank economist Michael Biggs. It is simply the change in new credit issued as a percentage of GDP. The conventional method measure used when associating developments in credit with developments in domestic demand is credit growth which actually is the growth in the stock of credit. [...]

October 10, 2014 Oguz Erkol Macro View 0

GDP Growth and Potential Output in Turkey

GDP Growth and Potential Output in Turkey

It is strange to see that economists taking part in analyzing Turkey do not have a consensus about the third quarter growth projections. Turkey reported a year-over-year growth rate of 2.1% in the second quarter in which exports as a positive contributor to the growth surprised to the upside while investment significantly remained weaker. On [...]

September 25, 2014 Oguz Erkol Macro View 0

Turkey: Housing Bubble Update

Turkey: Housing Bubble Update

Turkey’s house prices bull market momentum as a consequence of years of negative real interest rates policy, which is somehow called tight by Central Bank of Turkey, is rapidly translating into positive economic data as illustrated not by the unemployment rate surging to 9.9% in seasonally adjusted terms, or the GDP growth reported to be [...]

September 15, 2014 Oguz Erkol Macro View 0

What Fee Restriction Would Mean for the Stocks

What Fee Restriction Would Mean for the Stocks

Huseyin Aydin, head of the Turkish Banks’ Association, said that he expects the regulator to publish new rules that limit fees and commission charged by the banks (read the Bloomberg story here). This has been longstanding topic in the industry and eventually it will be likely made come true by the regulator. This will also [...]

August 22, 2014 Oguz Erkol Equities 0