1 WEEKLY FOREIGN TRANSACTIONS July 7th July 11th, 2014
Slide 2
Equity 2 Foreign investors bought US$126mn (fx-adjusted)
Turkish equities last week (July 7th-11th). This is the 1st net
foreign buying after 4 weeks, bringing 3Q14 cumulative purchase
amount to US$108 and year-to-date cumulative amount to US$1.7bn
(2012 figures). Foreign equity stock rose to US$62.7bn. BIST-100
index surged 2.7% in US$ terms last week to log the best gain in
last 7 weeks as foreign ownership in BIST rose to 63.7%. P/E ratio
(current) of BIST-100 closed the week at 13.7, still above its
5-year median.
Slide 3
Fixed Income 3 Foreign investors sold US$268mn (fx-adjusted)
Turkish fixed income securities last week, registering the 1st
weekly sale in last 7 weeks. This brought the year-to-date foreign
purchase figure down to US$240mn while 3Q14 amount was cut to
US$437mn. Foreign fixed income stock stands at US$54.7bn. Overnight
REPO rate hovered right above CBRTs borrowing rate last week (8.0%)
amidst markets expectation of 50bps policy rate cut. Turkeys 2-year
CDS rate was unchanged last week at 102.4 while 5-year CDS
retreated to 176.1.
Slide 4
Summary 4 Total foreign outflow from Turkish securities
(equity+fixed income+REPO) last week amounted to US$866mn
(fx-adjusted), 1st outflow since late May14. BIST-100 index
advanced 2.4% last week despite global profit-taking and closed
just below 80k level. Despite last weeks outflow, monthly (last 4
weeks) foreign purchase of Turkish securities still standing tall
at US$3.9bn. Foreign stock of Turkish securities advanced to
US$130.5bn, 32-week-high, yet still below all-time-high level of
SU$166.1bn which was reached in mid May13.
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