This Year’s First Half: Turkish Investors See Significant Growth in Stock Assets
In the first half of this year, the stock assets of domestic residents (local investors) increased by 42.3%, reaching 3 trillion 699 billion TL. Meanwhile, the stock assets of foreign residents (foreign investors) grew by 46% during the same period, amounting to 2 trillion 274 billion TL.
TSPB Releases Financial Market Summary Data for June 2024
The Turkey Capital Markets Association (TSPB) announced the “Financial Market Summary Data” for June 2024. According to the data compiled by TSPB from the Central Bank of the Republic of Turkey (TCMB) and the Central Securities Depository (MKK), the stock assets of local investors, which were 2 trillion 600 billion TL at the end of 2023, increased by 42.3% in the first half of this year, reaching 3 trillion 699 billion TL by June 2024.
Significant Yearly Increase in Local Investors’ Stock Assets
The increase in stock assets for local investors represented a year-on-year growth of 91.1%. TSPB data revealed that the returns provided by stocks have offered local investors a return above inflation, both on an annual basis and for the first half of this year.
Distribution of Local Investors’ Stock Assets
As of the end of June 2024, local investors’ stock assets, totaling 3 trillion 699 billion TL, comprised 1 trillion 762 billion TL from institutional investors and legal entities, while 1 trillion 937 billion TL belonged to individual investors.
Growth in Financial Assets of Local Investors
According to the data released by TSPB, the financial assets of local investors amounted to 22 trillion 608 billion TL at the end of 2023 and grew by 15.4% over six months, reaching 26 trillion 9 billion TL by the end of June this year. Local investors’ financial assets increased by 45.2% during the one-year period from June 2023 to June 2024.
Growth in Investment in Special Eurobonds
The TSPB Financial Market Summary data indicates that the highest growth in the financial assets of local investors in the first half of this year occurred in special eurobond assets, following stocks. Local investors’ special eurobond assets increased by 38.3% to 604.5 billion TL, while public eurobond assets rose by 11.9% to 1 trillion 645 billion TL during the same period.
Local Investors’ Deposits on the Rise
Local investors’ Turkish Lira (TL) deposits increased by 54% year-on-year and by 15% over the last six months, reaching 9 trillion 772 billion TL by the end of June 2024. Their foreign currency deposits grew by 23.2% annually and by 3.4% in the first half of this year, hitting 5 trillion 356 billion TL by the end of June.
Under-Inflation Growth in Other Assets
TSPB data shows that the increase in other assets, excluding stock and special eurobond holdings, remained below inflation for local investors.
Foreign Investors’ Financial Assets Surge Over the Year
According to TSPB’s Financial Market Summary Data for June 2024, the financial assets of foreign residents (foreign investors), which stood at 2 trillion 574 billion TL at the end of 2023, saw a growth of 44.9% in the first half of this year, reaching 3 trillion 730 billion TL by the end of June.
Significant Annual Growth in Foreign Investors’ Assets
Foreign investors’ financial assets increased by 135.2% in the year spanning from June 2023 to June 2024.
Growth of Foreign Investors’ Assets Outpaces Inflation
TSPB data indicates that in the first half of this year, the growth of foreign investors’ assets, excluding foreign currency deposit accounts, surpassed inflation. Foreign investors’ TL deposit assets increased by 44.9% in six months, reaching 419 billion TL, while foreign currency deposit accounts rose by 3.8% to 649 billion TL during the same period.
Momentum in Stock Assets Continues
TSPB data also revealed that the momentum in the previously declining stock assets of foreign investors continued to increase in the first half of this year, influenced by the government’s monetary policies following last year’s elections.
Growth in Foreign Investors’ Stock Assets
According to TSPB summary data, the stock assets of foreign investors, which were 1 trillion 557 billion TL at the end of 2023, increased by 46% over six months, reaching 2 trillion 274 billion TL by the end of June this year. The rise in foreign investors’ stock assets amounted to 190.2% on an annual basis.
Remarkable Increase in Government Debt Securities
Foreign investors’ government internal borrowing bond assets, which were 77.5 billion TL at the end of last year, increased dramatically by 344.8% over six months, reaching approximately 345 billion TL by the end of June 2024. Meanwhile, private sector borrowing instrument assets surged by a record 688% to 13.3 billion TL during the same period.
Continued Interest in IPOs
Moreover, the TSPB report titled “General Outlook of the Turkish Capital Market July 2024” reveals that interest from companies in public offerings is steadily increasing. According to data compiled by TSPB from Borsa Istanbul, there were 52 public offerings in 2021, 40 in 2022, and 54 in 2023. In the first six months of this year alone, 22 companies went public, raising a total of 46.6 billion TL from the capital markets through these offerings.
Total Capital Raised through IPOs Since 2021
TSPB data indicates that from 2021 until the end of June this year, a total of 168 companies raised 166.8 billion TL through public offerings in this 3.5-year period.
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
