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The Turkish equity market (BIST100) has been on an upward trend since 2008, but on May 22 it touched the bottom trend line and bounced. On the other hand, the banking index has been much weaker and broke the long-term upward trend a year ago.
In USD terms, however, the picture is different. Both the main index and the banking index are close to or at their historical lows, while the banking index is even well below the 2008-09 financial crisis lows. Positive catalysts such as the end of election uncertainty, improved sentiment toward US-Turkey relationships after President Donald Trump’s comments at the G20 summit, a continued favourable global backdrop, and inflation falling to the mid-teens and giving room for healthy rate cuts, have already been priced-in, according to Tuzun. “However, the two-year benchmark bond yield
55 TURKEY Country Report July 2019 www.intellinews.com
