Foreign capital continues to flow in, Turkish stock market set to achieve its best January performance since 1997
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Glonghui, January 29|With optimism surrounding emerging markets and low valuations attracting foreign investors back into the market, the Turkish stock market is set to achieve its best January performance in 29 years. The Borsa Istanbul 100 Index has risen 19% in dollar terms so far in January, marking its best performance since 1997. Even after this rally, Turkish stocks still trade at a significant valuation discount to other emerging market stocks based on expected price-to-earnings ratios. “Amid the surge in enthusiasm for emerging market investments, the Turkish stock market is catching up,” said Batuhan Ozsahin, CEO of Ata Portfoy Yonetimi. “The dollar depreciation trade is still ongoing and the momentum remains strong.” According to central bank data, from early December to January 16, the Turkish stock market attracted $1.36 billion in foreign capital inflows. Previously, the BlackRock Frontier Markets Investment Trust had made Turkish stocks one of its largest holdings, increasing its allocation from nearly zero a year ago to nearly 10%.
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