While the Turkish markets cannot benefit enough from the positive course in the world, they feel the weight of the troubled periods in the last weeks. With the reaction purchases towards the end of the week, Borsa Istanbul BIST100 index tried to turn its direction upwards. But experts are worried that these backlash purchases may be too permanent. In the first half of the year, the BIST 100 index lost 8.15 percent in TL terms and 21.58 percent in dollar terms. Analysts, who stated that the pricing in the stock market can no longer be considered even as cheap and that there is no new money inflow, do not expect any news that will turn this trend into a positive one.
Ata Yatırım Deputy General Manager Cemal Demirtaş stated that the country’s risk perception is very high and that neither domestic nor foreign investors have recovered since 18 March. Demirtaş, who noted that foreign investors were hopeful with the change in November, and that he thought that there could be predictability for the future, expressed that pessimism had collapsed as of March. Demirtaş reminded that we have not been able to catch the rallies in the foreign stock markets since March and said that the company values have reached the lowest levels and that the dynamics in the economy are strong.
Despite this, Demirtaş emphasized that he had difficulties in explaining TL assets to foreigners due to geopolitical and domestic political risks, and said, “I am someone who tries to explain it to foreigners. I’m talking to the biggest funds in the world. I’m in favor of focusing on the country right now. We can’t afford to make mistakes anymore. We’ve had crises before, but we’re at a point where we’re not presenting any arguments. The stock market is not a thing in space. Especially large stocks are a reflection of Turkey’s perception. Reflection of the stock market Turkey perception. Big companies are of this value and if no one is moving, there is something here,” he said.
Companies have 50-60 percent potential
Demirtaş stated that it is the domestic institutional investor that protects Turkey and that the private pension funds balance the markets with the BES system. Demirtaş, who noted that at this point the stock market has reached, can only create value for companies and that he expects a movement, he also emphasized that he sees 50-60 percent potential in many companies. Demirtaş said, “It also shows such a high potential risk. “There is so much potential because the risk is high,” he said.
Mert Yılmaz, Deputy General Manager of Info Investment, evaluated the move very simply as “the stock market that can’t get out will fall” and said that staying below 1400 points in the BIST100 index is a knife-edge. Yılmaz, who warned that the decline may continue unless there is a new topic on the agenda, also drew attention to the fact that reaction purchases are gradually coming. Yilmaz, who pointed out the reasons why the purchases did not turn into a trend as the running out of money, stated that the foreigner did not come, the domestic corporate did not buy, and the individuals remained in their possession.
Difficulty creating new theme
Dünya Newspaper Writer and Deniz Yatırım Strategy and Research Department Manager Orkun Gödek emphasized that it is neither possible nor healthy to explain the recent decrease in trading volume in Borsa Istanbul with a single reason and said, “We are talking about a situation that consists of many different components. First of all, it is necessary to start with the fact that the pandemic conditions in 2020, as in other parts of the world, support the increase in interest in financial instruments, especially stocks, is not sustainable. As a matter of fact, the slowdown in the number of investors at the first stage and then the decrease in May explains the situation very well,” he said. Stating that the participation process of companies in the public offering trend, which has been desired for a long time, could not be progressed in the desired path, Gödek said: “There were wide-ranging wrong trends from applications to transaction activities after going public. The Turkish Lira liquidity, which was attracted by the public offerings in the same week, paved the way for the acceleration in the decrease in the transaction volume, with the foreign investors, especially the institutional investors, who accelerated their exit after March 19 and kept their interest at very low levels. While the average transaction volume of the index 100 has been around 15 billion liras in the last 2 months, this figure was doubled in March. Gödek also emphasized that the pressure on valuations due to the rise in interest rates, the difficulty in creating a new theme, the increase in volatility and the recent losses in different investment instruments such as crypto assets and gram gold have led investors to classical products that they see as safer. Gödek also stated that the imbalance created by the transactions performed by the software on the prices and the negative effect on the investor perception reveals the fact that there is an urgent need for regulation here.
There are those who have a credit position in hard sales
Mert Yılmaz emphasized that the most important feature of individuals is not to sell goods at a loss, but that there are those who hold credit positions in hard sales, “The sales of credit positions are coming. Everyone is obsessed with trading volume. The mistake is that last year’s trading volume was not rational. Those who wait for last year’s will wait a lot because the price of the goods has dropped. There are no foreigners, fresh money does not enter. Since the upward trend expectation is also weak, no one wants to enter and buy. The main problem stems from credit transactions. Cheap is one thing, being attractive is another. Don’t buy goods just because they’re cheap. If no one buys goods, it is necessary to write a story,” he said.
Source: Dünya Gazetesi by www.dunya.com.
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