Foreign investors spark Turkish stock rally
Defying expectations, foreign investors buy $705.59 million in Turkish shares in May.
Foreign investors at the Turkish stock market would normally turn to selling in May, but this year they threw a curveball.
Local investors were uneasy at the beginning of May, expecting a significant foreign sell-off. But as locals moved to sell, heeding the pundits’ forecasts of “profit realization,” foreigners took the opportunity to buy, amassing shares worth $705.59 million — their largest monthly buy this year.
Borsa Istanbul’s (BIST) foreign investors have drawn attention as buyers since February. Trading had been marked by massive sell-offs until the end of January amid a corruption scandal, leaked audio tapes and political uncertainty ahead of the local elections in March.
According to Al-Monitor’s research, the BIST 100 Index hit its lowest level over the past year on Jan. 29, dipping to 60,753 points. On June 10, however, the index was up to 81,672 points, a rise of about 34% over four months and 10 days.
