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News from Turkey

Foreign Investors Buy $178M in Turkish Equities Amid Bond Selloff

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According to data released by the Central Bank of the Republic of Turkey (CBRT), foreign investors made a net purchase of $178.3 million in Turkish equities during the week ending July 11, based on figures adjusted for price and exchange rate effects. This marks a continuation of foreign interest in Borsa Istanbul, despite notable outflows in the government bond market.

Foreigners Increase Exposure to Turkish Stocks, Reduce Bond Holdings

While equities saw net inflows, foreign investors sold a net $493 million in government domestic bonds (DİBS – outright purchases) in the same period. Additional outflows were recorded in other DİBS instruments:

  • DİBS (Reverse Repo): net $54.6 million in sales

  • DİBS (Collateral): net $421.1 million in sales

  • DİBS (Lending): no transaction reported

In contrast, non-sovereign sector securities—excluding general government bonds—saw net inflows of $13.7 million, indicating selective interest in corporate issuances.

Stock and Bond Holdings as of July 11

Foreign investors’ total equity stock holdings reached $31.58 billion in market value. Government securities, meanwhile, were held as follows:

  • DİBS (Outright): $14.05 billion

  • DİBS (Reverse Repo): $1.6 billion

  • DİBS (Collateral): $3.07 billion

Holdings in non-government sector issuances stood at $785.2 million, reflecting a minor but steady foreign presence in Turkey’s corporate debt market.

Equities In, Bonds Out

The weekly data suggests a shifting preference among foreign investors toward Turkish equities, potentially driven by rising inflation hedging, positive earnings outlook, or portfolio rebalancing. At the same time, profit-taking or risk-off sentiment may have driven significant bond outflows, especially in DİBS instruments.

Analysts note that continued inflows into equities—if sustained—could signal renewed confidence in Turkish capital markets, but the net $969 million in bond outflows across categories this week highlights lingering macroeconomic caution.

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