In week starting 21st July, foreign investors bought $ 251 million in stocks and $ 1.8 billion in bonds and bills. The hot money that entered in 1 year, entered in almost one week, only. However, it is important that this high level of hot money entries should continue, for the optimism in the market to prevail.
The optimism due to the money inflows is continuing. The market which has turned a blind eye to negativities such as “the challenging agenda, the need for new expectations etc.” continues to favour the old stockbroker saying "big money is right" by sticking to a positive trend.
In week commencing July 21, foreign investors bought more than 2.1 billion dollars in total to include 251 million dollars in stocks and 1.880 million dollars in bond. The amount of hot money that entered the stock market in one month and even one year came in almost one week. The three-week entry in July is close to US$ 2.5 billion. This picture shows optimism on the market, clearly. It is recommendable to follow the inflow and outflow of money, in terms of the trend of the market.
For the continuity of a positive trend, the continuity of new money entries is essential. On the other hand it is of utmost importance to consider that money inflows will not be endless meaning the market will certainly start seeing outflows sooner or later, as well. Another noteworthy point is that foreign investors are observed to be much more aggressive in taking risks, while domestic investors are cautious, obviously due to their financial strength and their dominance in orienting the market.
On the other hand, it is difficult to say that the optimism of capital markets has a meaningful reflection on money markets. In this measure, it is noteworthy that the USD / TL exchange rate remains above 3.50 despite hot money inflows from outside and depreciation of the dollar against foreign markets. So the buyer is coming. it is worth nothing that despite this huge amount of entry from abroad and devaluation of US$ in foreign markets, US Dollar / Turkish Lira rate has not dropped below 3.50.
Other topics, such as the meetings of the Federal Reserve and the central bank of Turkey, the unpleasant conflicts lived through with Germany, the ups and downs in foreign markets, the movement of the dollar and currencies of some developing countries, and the borrowing limits of the Treasury are all factors to have an impact on the future trend of the Istanbul Stock Market, as well as July inflation figures, most recent foreign trade data and US non-agricultural employment data to be made public in the coming days.