SAFAKNA TURKEY – Borsa Istanbul has been making investors smile since the beginning of the year, seeking to make a profit.
This year, when most of the world’s stock markets were negative, the BIST 100 index on the Borsa Istanbul exchange brought its investors a 168 percent return in 11 months.
If the last 2 months are taken into account, the BIST 100 is up 57 percent, and the growth in question marks the highest two-month performance since January 2000.
While the BIST 100 rose 56 percent in dollar terms over the period, the index rose to 267 points. Despite its year-to-date performance, the index is far from its all-time high of 509 in dollar terms.
While the BIST 100 broke its closing record with a score of 4,977.64, up 25.1% last month, it also set a record high of 4,988.68. While all sectoral indices calculated by Borsa Istanbul rose in November, the mining industry made the biggest profit with 60 percent.
On an equity basis, 98 stocks rose in value in the BIST 100 index in November, while 2 shares lost value. Koza Gold Enterprises made the most with 89%, while Sinpaş Gayrimenkul Yatırım Ortaklığı with 42% lost the most.
“INVESTORS SHOULD BE EXTREMELY SELECTIVE”
Orkun Gödek, director of strategy and research at Deniz Yatırım, said the stock market’s rise after the company’s third-quarter financial results came as no surprise.
Noting that there are partial divergences and severe volatility in the BIST 100 index, Gödeck stated that the trend towards equities in local asset prices is a natural result of yield seeking due to intense negative real returns.
Gödek stressed that public offerings have resumed after a long hiatus in the recent period, and said: “This is again the explanation for the increase in domestic investors. Since we have generally moved away from overseas pricing rubrics, we operate more with local developments. For this reason, there is a significant benefit for investors to move forward knowing that there is no one-sided stock market.”
Claiming that Turkey is at the starting point of the famous “election rally” which is a concept that is valid in all countries of the world, Gödek said that the process could be subject to volatility due to the extremely low level of foreign investors.
Gödeck stated that not every news flow in the markets is measured on the scale it should be, and made the following estimates:
“Another widely recognized fact is that Turkish companies are trading at a discount compared to historical averages. However, there are many different reasons for this. Investors should always be aware of the history of the companies they are partnering with under various conditions in the future, and should be aware that they will move forward in long-term partnerships when needed. Orbiting rumors, social media, and group messages can turn today’s new investors into tomorrow’s disgruntled stock investors. As a rule, we use the logic of a model portfolio. Not every remaining sector/company has the same potential. You should also pay attention to seasonal differences.
WILL THE RENEWAL TREND CONTINUE?
Altan Aydın, Investment Director of the Fund, also stated that Borsa Istanbul is living in historical times and said: “The BIST 100 index, which started with inflation expectations and continued to rise with strong balance sheets, constantly updated its peak, while it differed significantly from their counterparts. in dollar terms.”
Emphasizing that companies with high index weights and a lack of alternatives have been the strongest topic lately, Aydin noted that this topic can generate profitable sales from time to time, but they expect the upward trend in general to continue.
Aydın said that investment partnerships in the real estate, holding, food, automotive and insurance sectors could remain in the first place, adding: “While there is a possibility of losing momentum in the BIST 100 index at 5,100 and above, we advise investors to keep their positions until the level is above 4.750. We are looking at possible fluctuations and profit selling that could occur in December as a buying opportunity in the medium term. From this perspective, domestic deposit rates, external markets, and central bank actions can pose a risk.”
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