Presentation on theme: "1 WEEKLY FOREIGN TRANSACTIONS July 7th – July 11th, 2014."— Presentation transcript:
1 WEEKLY FOREIGN TRANSACTIONS July 7th – July 11th, 2014
Equity 2 Foreign investors bought US$126mn (fx-adjusted) Turkish equities last week (July 7th-11th). This is the 1st net foreign buying after 4 weeks, bringing 3Q14 cumulative purchase amount to US$108 and year-to-date cumulative amount to US$1.7bn (≈2012 figures). Foreign equity stock rose to US$62.7bn. BIST-100 index surged 2.7% in US$ terms last week to log the best gain in last 7 weeks as foreign ownership in BIST rose to 63.7%. P/E ratio (current) of BIST-100 closed the week at 13.7, still above its 5-year median.
Fixed Income 3 Foreign investors sold US$268mn (fx-adjusted) Turkish fixed income securities last week, registering the 1st weekly sale in last 7 weeks. This brought the year-to-date foreign purchase figure down to US$240mn while 3Q14 amount was cut to US$437mn. Foreign fixed income stock stands at US$54.7bn. Overnight REPO rate hovered right above CBRT’s borrowing rate last week (8.0%) amidst market’s expectation of 50bps policy rate cut. Turkey’s 2-year CDS rate was unchanged last week at 102.4 while 5-year CDS retreated to 176.1.
Summary 4 Total foreign outflow from Turkish securities (equity+fixed income+REPO) last week amounted to US$866mn (fx-adjusted), 1st outflow since late May’14. BIST-100 index advanced 2.4% last week despite global profit-taking and closed just below 80k level. Despite last week’s outflow, monthly (last 4 weeks) foreign purchase of Turkish securities still standing tall at US$3.9bn. Foreign stock of Turkish securities advanced to US$130.5bn, 32-week-high, yet still below all-time-high level of SU$166.1bn which was reached in mid May’13.
5 DISCLAIMER: The research reports have been prepared by Alkhair Portföy Yönetimi A.Ş. solely for informational purposes. The information presented in this report is gathered from sources which are believed to be reliable. Content and information provided by third parties is published as supplied to Alkhair Portföy Yönetimi A.Ş and Alkhair Portföy Yönetimi A.Ş has not independently verified any of such information. Every effort is made to assure the accuracy of the report by the analyst, however, information, text and graphics of the research reports may include technical inaccuracies or typographical errors. The matters covered on this report may include forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. Alkhair Portföy Yönetimi A.Ş does not undertake to advise you of changes in the information or opinions set forth herein subsequent to such date or provide you with access to any additional information or to correct any inaccuracies therein which may become apparent subsequent to the date hereof or to publicly update any information or any forward looking statement, whether as a result of new information, future events or otherwise. Alkhair Portföy Yönetimi A.Ş, any of its parents, subsidiaries or affiliates, agents, employees or representatives, do not make any representations or warranties, express or implied, for the accuracy, timeliness, completeness or fairness of any such information or any estimates, conclusions or opinions based thereon, and does not accept any liability or responsibility whatsoever for the contents of the report or for any errors, omissions or mis-statements, including without limitation liability for any direct/indirect damages, financial/moral loss suffered by any party. This report does not constitute an offer to sell or a solicitation of an offer to buy any securities and may not be used or relied upon in connection with any offer or sale of securities. The investments discussed in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and in reliance on an offering circular or prospectus approved by the issuer, their own investigations and the advice of such independent advisers as they deem appropriate. Investors should not make their investment decisions on the basis of this report and construe the contents of this report as legal, tax or financial advice. Investors should have the financial ability and be willing to bear the risks associated with the investments discussed in this report. Individual investors who may not have deep knowledge about capital markets are advised to consult professional portfolio managers instead of making their own buy or sell decisions. Alkhair Portföy Yönetimi A.Ş, any of its parents, subsidiaries or affiliates, agents, employees or representatives, cannot be held liable for any adverse consequences of the investment decisions made as a result of reading this report. Copyright in this report is owned by Alkhair Portföy Yönetimi A.Ş except where otherwise indicated by a third party's proprietary notice. Images, trade marks and brands are also protected by other intellectual property laws and may not be reproduced or appropriated in any manner without written permission of their respective owners.