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April 21, 2017 www.intellinews.com I Page 9
Istanbul stock exchange defies all woes, search for “The Dude” goes on
bne IntelliNews
The Istanbul stock exchange’s benchmark BIST- 100 index passed the 92,000-level on April 20 despite the controversial outcome of the week- end’s constitutional referendum and the exten- sive set of macroeconomic and political worries inherited from the pre-referendum period.
The index was trading at 92,677 at midday on April 17, which means the index was up by around 2% on the week and around 11% over the past three months.
The jump in the BIST-100 was led by banks, with Garanti Bankasi’s shares up 1.05% d/d and reg- istering the largest transaction volume, followed by the shares of Halk Bankasi (up 4.03%) and Akbank (up 1.64%).
If the index manages to stay above the 91,600 level, its rise might escalate, Istanbul-based brokerage Integral Yatirim said on April 20. If it does not, the selling pressure could strengthen. “The next few days are critical for the BIST-100 index,” according to Integral.
The central bank reported on April 20 that the BIST-100 attracted $173mn worth of inflows dur- ing the week ending April 14. Portfolio inflows have thus amounted to $1.19bn so far this year.
Analysts have found it difficult to explain the rally on the Borsa Istanbul seen since the beginning of 2016. It has taken place despite the gloomy macroeconomic outlook, domestic political tensions and regional security threats that, for instance, have undermined Turkey’s tourism industry, a big spinner of hard currency. In early March, Bloomberg reported that a single bro- kerage, Istanbul-based Yatirim Finansman, had been behind the largest trades on two-thirds of the Borsa Istanbul’s most tumultuous days in the year to date.
In March 2016, Seniz Yarcan, CEO of Yatirim Finansman, told local business daily Dunya that a big fund trading with algorithms was behind the large daily volumes. Local traders have since referred to the large trader in question as “The Dude”.