Only 5 per mille of the buyback funds entered the stock market.

SAFAKNA TURKEY – We have seen that some of the measures taken to limit the damage caused by keeping Borsa İstanbul open for two days after the earthquake have produced results, while others have yet to be seriously considered. To give an example, we started to see reflections in stock portfolios in the first two days of pension funds where contributions are managed. In fact, the 14 percent stake in some funds even exceeds the minimum floor of 30 percent, and some funds have been noted to be slow on this issue. Of course, it is possible that these funds waited for the market to calm down a little, instead of taking positions in the stocks that had a ceiling on the first day, for at least a 10-day adjustment period, which was the second day. Or, this is another possibility that they failed to find opportunities to buy stocks that had a ceiling on the first day and only valued the second trading day. However, one way or another, on February 16, when the Istanbul Stock Exchange reopened, the figure flowing into the stock market from contribution funds was close to 3.2 billion Turkish lira. The expected figure was at least 7.1 billion Turkish lira. In other words, the additional figure expected to be introduced after the first two days is at least another 3.9 billion Turkish lira. At the time of writing, it was the third trading day.

Robotic measure proved ineffective

Another precautionary measure, algorithms, no one saw them on the market on the first day. At the same time, it seemed that the speed of processing orders was derived through BISTACH, that is, the speed of the algorithm was reduced by a third, and the threshold for exceeding commissions was increased by 8 times. On the other hand, on the second day we saw robots in all their glory in the market, and although the stock market rose more than 1 percent on Thursday, the number of shares that rose was only 85. All remaining shares lost in price from 1 to 10 percent.

Biggest Hope for Share Repurchase

In fact, the measure that gave everyone the most hope was the buyback programs of companies, which the regulators clearly emphasized. Although participation on the first day seemed disappointing, the number of companies that announced a new buyback program or increased the amount of funds they identified in the old buyback programs reached 64, and the size of the share buyback fund they announced 24 reached 449 million 875 thousand Turkish lira . And while a limited number of purchase transactions were reported on the first day of KAP under these buyback programs, on the second day it began to accelerate. In fact, this acceleration is not so much to prevent a second daily fall in the stock market. But here’s something to note. In the first two days, only 27 out of 64 companies started their purchases, and the amount they received was only 122 million 890 thousand Turkish lira. That is, only 5 per thousand of the total size of the redemption fund. In other words, in the future there is still 24 billion 327 million Turkish liras of money that will move from companies to their own shares. While the fund’s size of 24 billion TL seems like a weak figure in a market where the value of the publicly traded portion is 1.4 trillion TL, this number should not be taken lightly when viewed as a fresh influx of money into the market. market. Undoubtedly, these buyouts will at least make a significant contribution to supporting investors in critical market conditions. For some shares, 15 to 25 percent of the announced buyout fund amount was achieved even in two days of purchases. An increase in the maximum fund size of these early buyback programs can also be expected, especially given the zero withholding tax on share buybacks. 37 companies have not even started buyouts yet. It seems very likely that we will see a real effect from the purchases that start from now on.