Borsa Istanbul became a haven for investors

of powerTo avoid the risk of a balance of payments crisis, the deep negative interest policies implemented with the thesis that “interest causes inflationary results”, which had to be abandoned after the elections, the extremely low interest rate on deposits and restrictions on foreign transactions. Exchange transactions made the stock market become an important place for citizens. The BIST 100 index, which started a new rally after the policies implemented with the management of the new economy, in 2023 took its place among the main stock markets in the world in terms of annual performance.

DYNAMO BENCHES

The banks that bought the normalization of the economy also became the driving force behind the rise in the stock market. The banking sector has also increased by 61.3% since the beginning of the year. On the other hand, the rapid increase in public offerings and the high returns of publicly offering companies in the first period caused citizens to flock to Borsa Istanbul to participate in public offerings. As a result of all this, the BIST 100 index rose to 8,398 points with a return of 51.5% from the beginning of the year to September 8, showing the best performance by far among the world’s major stock markets. Taking into account that the 8-month inflation rate was 43.06 percent in 2023, its real return was 6.1 percent. Although the BIST 100 depreciated 0.15 percent yesterday, it broke the weekly closing record and closed the day at 8,325 points.

FIVE YEARS IN A CONSEQUENTIAL

Thus, for the first time since 1997, the BIST 100 made its investors smile for 5 consecutive years. The index volume record was broken on August 24 with 224.9 billion lira. However, the course of global stock markets lags far behind the BIST 100. On the New York stock market, the S&P 500 index gained 17 percent this year, the Dow Jones 4.5 percent and the Nasdaq 34 percent. While the FTSE 100 index in the United Kingdom fell 1 percent on an annual basis, the DAX 40 index in Germany rose 12.7 percent and the CAC 40 index in France rose 11 percent.

Loss of dollars and deposits.

When adjusted for inflation, the BIST 100 has become the investment instrument that provides the highest real annual return to its investors with a gain in value of 63.71 percent. According to the August 2023 report published yesterday by the Turkish Statistical Institute, in the last year, while gold bullion provided a real return of 3.56%, the euro of 1.37 percent to its investors, the dollar lost 5.88 percent, deposit interest 26.74 percent and government bonds 35.81 percent. . When reduced by the consumer price index (CPI), the highest monthly real return in August was 7.32 percent on the BIST 100 index.