ANALYSIS-Supercharged Turkish stocks rally not everything it seems

Logo Nasdaq
Nasdaq

By Canan Sevgili and Berna Suleymanoglu

Nov 25 (Reuters) - The lira's plunge has propelled Turkey's exporter-dominated stock market to its best month in 12 years, but for foreign investors, who have just started dipping their toes in again, it's a very different story.

The stock rally, taking in exporters such as steel producer Iskenderun Demir (Isdemir) ISDMR.IS and glass maker Ssecam SISE.IS, has seen Istanbul's $37 billion main bourse .XU100 soar nearly 20% in November, which is almost as much as the lira TRYTOM=D3 has slumped.

AD
AD

Emerging economy stock markets often surge when their country runs into trouble because locals see equities as a relatively safe asset as companies either ramp up prices to offset spiralling inflation or benefit from a weaker domestic currency if they export overseas.

Big money international investors are in the opposite situation though. They usually have to convert whatever they hold back into dollars or another major currency, meaning they see a huge fall in value.

MSCI's dollar-denominated index of Turkish shares .dMITR00000PUS, for example, slumped 9% during Tuesday's brutal lira rout, by which time it was down 20% this month and 30% since the start of the year.

AD

The currency slide - triggered by an unorthodox policy promoted by President Tayyip Erdogan of slashing interest rates, in the hope of boosting the economy and jobs, while inflation hovers near 20% - has at least left Turkish shares historically cheap and for some investors, a useful hedge against losses elsewhere.

Continue read on nasdaq.com

AD
Logo Nasdaq
By Tuvan Gumrukcu ANKARA, Nov 26 (Reuters) - Turkey reaffirmed on Friday its commitment to recent aggressive rate cuts, despite a lira plunge to record lows,...

Logo Nasdaq
ANKARA, Nov 26 (Reuters) - Turkey is determined to continue a policy of interest rate cuts, and manipulative attacks on the lira, which has plunged to...

Logo Nasdaq
Adds details, background ISTANBUL, Nov 3 (Reuters) - Turkish inflation rose less than expected to 19.89% year-on-year in October, still reaching its highest...

Logo The Economist
The Turkish president is at war with the markets BY THE END of the month the only food Emer can prepare is plain pasta. Occasionally she goes to bed hungry....

Logo Nasdaq
By Ambar Warrick Oct 21 (Reuters) - Most emerging market stocks and currencies fell on Thursday as concerns over inflation dented sentiment, with Turkey's...

Logo Nasdaq
Adds comment, fresh record low, data ISTANBUL, Oct 12 (Reuters) - Turkey's lira weakened to another record low beyond 9 versus the dollar on Tuesday, weighed...

Logo Nasdaq
By Susan Mathew Nov 1 (Reuters) - Emerging market shares fell for a fifth straight session on Monday as weak factory output data from China dented sentiment,...

Logo Nasdaq
By Susan Mathew Oct 28 (Reuters) - Emerging market stocks slipped for a third session on Thursday as sliding commodity prices and fresh fears about...

Logo Investing.com
EconomyBy Reuters23 Sep
Reuters. FILE PHOTO: Turkey's Central Bank headquarters is seen in Ankara, Turkey in this January 24, 2014 file photo. REUTERS/Umit Bektas//File Photo By...

Logo Nasdaq
By Susan Mathew Nov 3 (Reuters) - Turkey's lira underperformed on Wednesday as annual inflation neared 20%, widening the gap with the policy rate, and...

Logo Nasdaq
By Ambar Warrick Oct 18 (Reuters) - Emerging market stocks and currencies fell on Monday as data showing slower-than-expected Chinese economic growth dented...

Logo Nasdaq
Bitcoin could help rectify malinvestment and unsustainable development, if only embraced by a currently hostile Turkish government. Turkish President Recep...

Logo Nasdaq
By Huw Jones LONDON, Oct 15 (Reuters) - Stocks advanced on Friday as strong earnings kicked off a new results season on Wall Street and fears that inflation...

Logo Nasdaq
By Marc Jones LONDON, Nov 4 (Reuters) - World stocks hit record highs on Thursday after a smooth start to the U.S. Federal Reserve's stimulus wind-down plan,...

Logo Nasdaq
Todays Big Picture The major equity indices in Asia-Pacific were mixed today as the drama around Chinas Evergrande continues. Japans Nikkei rose 2.1%, but...

Logo Benzinga
TORONTO, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI, NYSE:AGI) (Alamos or the Company) today reported its financial results for the quarter...

Logo Nasdaq
Image source: The Motley Fool. Fluor Corporation (NYSE: FLR) Q3 2021 Earnings Call

Logo Nasdaq
Image source: The Motley Fool. Constellium NV (NYSE: CSTM) Q3 2021 Earnings Call Oct 27, 2021, 10:00 a.m. ET Contents: Prepared Remarks Questions and Answers...

Logo Nasdaq
Image source: The Motley Fool. Keurig Dr Pepper Inc (NASDAQ: KDP) Q3 2021 Earnings Call Oct 29, 2021, 8:00 p.m. ET Contents: Prepared Remarks Questions and...