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8.2.1 Equity market dynamics
Erdogan’s stock exchange or Las Vegas?
When it comes to Turkey’s stock exchange and the disguise thrown up around the parlous state of the Turkish economy, it is quite clear that any big advance on the bourse will have absolutely nothing to do with the fundamentals.
On the afternoon of September 27, 2019, a sudden and certainly unexplainable inflow of about TRY1.1bn ($180mn) into Turkish banking stocks moved the banking index up by 8% and the benchmark BIST-100 by 5% in an hour prior to the weekly market close.
That inflow out of the blue increased the transaction volume of the banking index to $768mn on September 27 from $404mn on September 26.
BIST-100 rallied 4.5% to 117,990 on January 9, 2020 with TRY700mn ($120mn) inflows, mainly from ‘The Dude’ and Societe Generale.
Risk over ‘The US vs. Halkbank’ indictment remain.
50 TURKEY Country Report OUTLOOK 2020 www.intellinews.com
