Turkish equities experienced a slight net inflow of $5.3mn in the week ending October 13, Turkey's central bank said on October 19.
The total equities inflow so far this year tops $3.11bn, in line with the scope of portfolio inflows into the emerging markets universe. Although the Istanbul bourse has experienced several all-time highs this year, it was the worst performing major emerging markets stock market during the month of September, adding to anxieties that Turkey's economy could be running out of steam.
The latest central bank data on Turkish government debt securities, meanwhile, showed an outflow of $601mn last week. There has been an overall inflow of $6.83bn into the debt securities in the year so far.
The Turkish lira gained 0.50% d/d against the USD to trade at 3.6583 as of 14:30 local time on October 19 while the BIST-100 was up 1.07% to 108,074. The benchmark index was up 38% on an annual basis.
The central bank also announced on October 19 that its gross foreign exchange reserves rose for the fourth consecutive week, moving up to $95.4bn as of October 13, the highest level since January 6, from $93.7bn as of October 6.
The gross FX reserves hit their lowest level this year, at $84.99bn, on April 28 - it was also the worst level recorded since July 2012. They stood at $95.7bn at end-2015 and at $92.05bn by end-2016.
The latest data also showed the central's bank's gold reserves rose for the fourth week in a row to $21.3bn as of October 13 from $20.68bn as of October 6. The gold reserves stood at $14.05bn at end-2016.
Consequently, the total gross international reserves, including gold and FX reserves, rose for the fourth week in a row to $116.7bn as of October 13 from $114.3bn as of October 6. Gross international reserves fell to $106bn by the end of 2016 from $111bn at the end of 2015.
Domestic households’ FX deposits and funds declined for the third week in a row to $162.6bn as of October 13 from $163.4bn as of October 6, the regulator's weekly bulletin also showed on October 19.
The FX holdings were at $145.55bn at end-2016 while they stood at $144.8bn in the week to December 2, when President Recep Tayyip Erdogan made his initial appeal to citizens to "mobilise" and convert FX they held into lira to bolster the country's currency.