Expectations of Feed pivot, validated by Fed FOMC dot plot and lower oil prices which automatically decrease current account deficits as well as slowing inflation has brought a annual record of foreign purchases of TL securities according to Seker Investment analyzing data published by Central Bank on Thursday.
Turkey’s main stock index, BİST-100 soared by 3.77%, led by Deutsche Bank and Bank of America issued positive reports on TL assets.
Central Bank of Turkey (CBRT) announced nonresidents’ securities portfolio developments for the week of December 8.
Foreign investors make strong purchases in TL government bonds
Foreign
investors purchased a net amount of $562 million for their stock portfolios and $891 million for their government securities portfolios in the local capital market in the week of December 8. In the week of December 8, foreign investors made the highest weekly net purchases into their portfolios since August 2017, with total inflow of 1,454 million dollars.
After the new economic management took office and the steps taken by the CBRT to return to orthodox policies, an inflow of 4.2 billion dollars has been recorded since the beginning of June.
Since the beginning of the year, a total inflow of 2.6 billion dollars has been recorded as a result of intense election uncertainty until the end of May, with inflows resuming in June after Erdogan’s victory. In the same period last year, there was an outflow of 5.6 billion dollars.
Source: Şeker Investment
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