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...
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 Turkish stock market and the benchmark equity index’ return during the same period. Interestingly, foreign investors have been consistently selling...
Foreign Investors’ Behaviors in Turkey
Tracking the foreign investors’ behaviors is the perfect guidance when it comes to investing in Turkish assets. This is also explaining the asset prices hit the top where non residents’ holding of assets makes a boom, in contrary, the market dips where non-residents turn out to be bears.
According to the Central Bank of Turkey data, the amount of cash flows into Turkish markets hit six-month at the end of week ending 25 Sep 2013....