Turkish Industrials: Buying Opportunities
In a recent note, we mentioned that now may be the moment to get in on value in Turkish stocks, particularly in industrial stocks. Following that, Borsa Istanbul Industrials Index (BIST:XUSIN) has bounced back 4.5% in two trading days, beating the banks, but currently see a sell-off (on Tuesday) but outperforming the broader market.
We think that the sell-off after the coup attempt created a buying opportunity. Hereby, we try to draw valid conclusions in a long-term...
Turkey: Any Room for Loan Growth?
Turkish central bank cut its overnight marginal funding rates by 75 basis points in the past two monetary policy meetings in an effort to simplify its interest rate structure as the volatility in global financial markets eases. The rate cuts came amid criticism by the government over high interest rates limiting the economic growth. With year-end inflation expectations around 8% and the central bank’s average funding rate of 8.5%, one would call the current stance of the central...
Turkey vs Emerging Economies: GDP Comparison Throughout History
Even if a number of pundits have the opinion that emerging economies can likely withstand a Fed rate hike, it would absolutely matter for all as investors have already began to flee with the tightening in financial conditions. On the other hand concerns about emerging market fundamentals have risen with the news signs of China’s slowdown that has intensified fears that the ongoing emerging economies growth deceleration is not over yet. This unsurprisingly led downward revisions to growth...