Page 11 - TURKRptFeb21

If your brokerage or investment advisor shows you a chart such as this and sells the story that ​“Borsa Istanbul is still far away from its historical highs”​, give them the boot. Ever since 2013, Turkey has been in freefall in all aspects. That’s the year of course that the FED could not negotiate the “taper tantrum”, causing it to fall into new expansionary cycles, first with Donald Trump and later on blown by the coronavirus.
Under normal conditions​, identifying stocks that have lagged the rally would be meaningful but the conditions are currently far from normal.
Right now on Borsa Istanbul, booming asset prices are booming some more, while non-booming asset prices may never boom as no analysis, fundamental, technical or otherwise, is presently possible and no one knows on which criteria some prices are continuously booming and some prices are not.
Ford Otosan (FROTO) is one company booming into 2021.
On January 14, the flash crash stock, Pegasus Airlines (PGSUS), had another flash crash.
Since January 4, the central bank has provided daily data on its FX-TRY swaps with local lenders, but it still does not provide the lira costs in swap transactions.
It is now easier to track inflows via local banks’ FX-TRY transactions on the London swap market but the costs of the central bank’s swap transactions with local lenders are important too as the national lender still provides more extensive Turkish lira funding via swaps.
In the chart below, shared on January 13 by @e507, Haluk Burumcekci of Burumcekci Consulting calculates the central bank’s weighted average funding rate at 15.54%, when swaps are included, as of January 12, versus 17% at the main policy rate (one-week repo) when swaps are ignored.
11​ TURKEY Country Report​ February 2021 ​ ​www.intellinews.com