Turkey: Foreign shares in stocks and bonds in historical lows
The share of foreign investors, who have been constantly exiting stocks and government bonds in Turkey has fallen to its lowest level in history, Turkey’s Dunya newspaper reported.
As of October 2022, foreign investment in the stock exchange was 31.67% and foreign share rate was 0.83% in government bonds.
In Borsa Istanbul, which stood as the only option for domestic investors seeking returns due to high inflation, sharp and rapid rises and falls in the absence of foreigners continued throughout the week, in what analysts described as a shallow market.
Dunya said that a small amount of purchase orders by a foreign bank caused an increase of up to 10 percent in banking shares during the day, because of this shallow market.
This year's output in the stock is $3.5 billion
Foreign investors have been constantly exiting Turkish financial investment instruments for the last 5 years. They reduced their stock portfolios by $4.25 billion in 2020 and $1.43 billion in 2021, and an additional &3.48 billion as of October 7, 2022.
The three year total sales of foreign shares have exceeded $9.2 billion since 2020. Foreign investors’ share in the stock market had reached 66% in 2020, but it decreased 40% in 2021. The rate continued to decline this year and fell to 31.67%.
The same goes for government domestic debt securities. The share of foreigners in government bonds was once 30% but declined quite rapidly in recent years. The share of foreigners in bonds, which was 11.6 percent in January 2020, decreased to 7 percent in April 2020. At the end of 2020, the share of foreigners was below 4%. The decline continued throughout 2022 and fell levels below 1 percent as of July.