Economy in Turkey: Critical week on Istanbul Stock Exchange; monitoring fund transactions essential

With recent declines in Borsa Istanbul, the BIST 100 Index has dropped to critical levels. However, the recent increase in institutional investors’ share ratios in their portfolios has drawn attention.

This rise can be viewed as a positive signal for investors. Historically, when funds have increased their share ratios, it has often been a precursor to upward movements in the stock market. Even small increases, particularly in pension and investment funds, can signal a market recovery. As such, institutional investors’ actions this week will likely be influential in determining the stock market’s direction.

Impact of Foreign Investors

The share of foreign investors in the stock market is another key metric to watch. Recently, we’ve seen a slight recovery in foreign holdings, which suggests that institutional investors may continue to buy stocks. An increase in holdings by both funds and foreign investors would positively impact the market.

Currently, twelve stocks within the BIST 100 have fallen below their 400-day moving average. Among these are prominent companies in their sectors, such as Arçelik, Hektaş, Petkim, Sasa, and Tofaş. Recovery in these stocks could provide hints of a shift in the overall market trend. Institutional purchases of BIST 30 stocks, in particular, could signal an overall market recovery.

ekonomim.com