Foreign investors sell $460mn worth of Turkish assets after coup attempt

By bne IntelliNews July 28, 2016

There was a total outflow of $460mn from Turkish equity and debt securities markets in the week ending 22 July, following a $1.2bn inflow in the week before the coup attempt, data from the central bank showed on July 28.

Foreign investors offloaded $220.5mn worth of equities last week versus a $374mn inflow in the previous week, while there was an outflow of $240mn from government debt securities that followed an inflow of $812mn in the week ending July 15.

Given the scale of the political turmoil triggered by the coup, last week’s selloff is small, showing foreign investors’ trust in Turkey’s $720bn economy.

Turkey’s markets had a bad week after the coup attempt. But as the government defeated the coup the markets have stabilized.

The main stock exchange index, the BIST-100, fell more than 13% between July 15 and July 21. Stocks, however, have gained 2.1% this week. The benchmark index was up 0.12% on July 28.

The lira fell nearly 6% against the greenback after the putsch. It, however, strengthened almost 1% this week. The local currency was trading at 3.0134 per dollar at 5:20pm local time.

NON-RESIDENTS' HOLDINGS OF EQUITY AND GOVERNMENT DOMESTIC DEBT SECURITIES ($ mn)

(Market Value)

22/07/16

15/07/16

08/07/16

01/07/16

24/06/16

17/06/16

10/06/16

03/06/16

27/05/16

STOCK

                 

         EQUITY

37,989.7

46,402.3

43,644.7

43,524.7

42,295.1

41,802.5

43,617.4

43,141.5

43,456.5

         GDDS 

34,015.3

37,721.6

37,006.1

36,915.7

36,156.7

35,235.7

36,035.1

35,302.6

35,019.3

            Repo

3,463.3

3,769.8

3,953.9

3,942.6

4,112.5

4,018.1

4,127.2

4,084.2

4,061.4

 Private Sector DDS

958.6

1,020.5

1,022.6

1,023.3

994.3

980.0

992.8

968.2

952.6

NET TRANSACTONS (Adjusted for Foreign Exchange and Market Price Effects)

   

         EQUITY

-220.5

374.2

-24.1

-151.8

144.3

-188.8

58.3

-96.2

-146.2

         GDDS

-239.6

812.1

-104.7

470.6

65.9

-264.6

-60.6

-50.0

0.3

             Repo

5.7

-174.6

-2.6

-197.8

-0.2

-54.1

-50.2

-1.5

-175.7

Private Sector DDS

-61.9

-2.1

-0.6

29.0

14.3

-12.8

24.5

15.7

-47.6

source: tcmb

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