Turkish equities rallied further to extend the quarter’s uptrend, as local stock prices attracted foreign buyers while local buyers sought to protect their savings.
- The benchmark Borsa Instanbul 100 Index climbed by as much as 2.7% on Wednesday, following the drop of the lira to a fresh record low. The biggest gainers include Arcelik AS and Turkish Airlines.
- The latest increase brings the index up 32% in local currency terms so far for the quarter, becoming the top-performer among global equity markets. It is the worst-performing index, however, in dollar terms.
- The lira depreciated after President Recep Tayyip Erdogan remarked that interest rates will continue to decline on Tuesday but has since appreciated after central bank intervention. It has so far weakened 35% since mid-September.
- Analysts believe that the currency weakness and the low rates drive attraction to the local equities, which remains among the few asset classes where locals can protect their savings.
Foreign investors have acquired some $1 billion of Turkish stocks so for this quarter through November 19.
TUR is up 4.40% premarket.