Page 12 - TURKRptJul20

Boyner also said that 33% of micro sized companies were struggling with payments while the figure stood at 2% for large scale firms.
The survey also showed that more than half of the firms were not prepared in terms of facing a second wave of the outbreak.
Small and medium sized enterprises (SMEs) in Turkey have been tapping local banks for credits to survive the crisis See Section 8.1.2).
2.6​ ​Retail investors ride 61% gain on Borsa Istanbul SME Industrials Index, regulator says stay wary of social media tipsters
The Borsa Istanbul SME Industrials Index, made up of the small and medium sized companies often favoured by retail investors, has jumped 61% this year, compared with a drop of 4.3% for the main benchmark, Bloomberg data showed on June 4.
One of the biggest drivers of the gains was reportedly a surge of 634% in coronavirus (COVID-19) diagnostic kit maker RTA Laboratories. When RTA’s shares dropped in the past two weeks, retail investors who missed out on the spectacular rally expressed their anger. That led to a social media controversy that led to two senior figures at an Istanbul brokerage losing their jobs.
Turkey’s Capital Markets Board on June 4 published a statement on its website that renewed a warning that investors should be wary of those making stock recommendations on social media. The regulator said it continued to see activity designed to cause investors to lose money. Some of those making recommendations on social media did not have the necessary qualifications to do so or were even on a blacklist that banned them from equity trading, it pointed out.
While the majority of the population are financially fettered, the minority who are not look for options to guard their savings against inflation tax.
Average lira deposit rates fell below 8% while one-month deposit rates, which Turks mainly prefer, fell below 7%. When the 15% deposit tax is excluded, the average return on one-month lira deposits fell below 6% as of June 5.
As a result, lira deposits fell to TRY1,399bn, or 50.7% of total deposits, as of June 5 from TRY1,404bn a week previously.
Residents’ FX deposits broke a new record, increasing to $202bn as of June 5, or 49.3% of total deposits, from $200bn a week previously. Turks prefer the USD among hard currencies.
Credit: Bloomberg HT
The number of Borsa Istanbul investors reached 1.56mn as of June 10 from
12​ TURKEY Country Report​ July 2020 ​ ​www.intellinews.com