Turkey: Brokerage Industry Trends
Turkey’s brokerages faced sharp trading falls in a tough climate last year of which 30% reported losses during the first half. That said, we had seen some downsizing-related layoffs as well as some international investment banks simply quitting the business. While this was partly due to some earnings recession felt in the industry, the underlying reason was that it was overcrowded so that more analysts rate Turkey’s bank than cover Wall-Street based banks.
After having a bad...
Profound Shift In Liquidity Risk
On Sep 15 an article appeared on Bloomberg that drew a gloomy picture for the brokerage services industry in Turkey. Some important highlights from the article are as follow:
About one third of brokerages posted losses in the first quarter. Austria-based Erste and Kuwait-based Burgan are eliminating jobs while Moscow’s Renaissance Capital is planning to shut its Istanbul office. Thirty-three analysts rate Halkbank (BIST:HALKB), one more than those who rate Goldman Sachs. The Borsa Istanbul 100 Index has fallen 15 percent this...
Do Turkish Dividend Stocks Outperform in Bear Markets
It is not a secret that dividend-paying stocks often come out ahead during a market sell-off. Because many investors are attracted to the safety appeal of them. As Turkish stock market is hanging around record high levels with foreign capital outflows on the horizon due to expected rate hikes by the US Federal Reserve, it is much closer to enter a bear market this year. Under these conditions one may think that high-yielding Turkish stocks will be seen...