Foreign investors poured into Turkish stocks at the highest rate in six months, after an overhaul of the country’s economic leadership sparked expectations of a return to orthodox policies.
(Bloomberg) — Foreign investors poured into Turkish stocks at the highest rate in six months, after an overhaul of the country’s economic leadership sparked expectations of a return to orthodox policies.
Overseas investors bought net $262 million of Turkish stocks in the week through June 9, according to the latest central bank data. That’s the biggest inflow since December. Net inflows into the country’s bonds were $25 million in the same week.
Concerns over Turkey’s unconventional economic policies like lowering interest rates to combat inflation and depleting reserves to defend the lira have led foreign investors to sell Turkish stocks in recent years, pushing their share of the equity market to record lows.
The new data coincides with the appointment by President Recep Tayyip Erdogan of two former Wall Street bankers — Mehmet Simsek and Hafize Gaye Erkan — to run the country’s finances, fueling optimism that Turkey could adopt a more orthodox approach.
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