Turkish stocks hit new records…new article…
ISTANBUL- I have new article out today in Business New Europe that talks about new records the Turkish stock market hit in the past few weeks.
The Turkish stock market is setting new records as it pulls in large amounts of foreign money despite the tumult in the country’s politics. With valuations of Turkish companies below the average for other emerging markets, analysts expect this strong performance to continue.
On July 29, the Istanbul Stock Exchange (ISE) hit at an all-time high of 60,734 after a week of breaking records. In the past year, the index is up about 32%. The MSCI Barra Emerging Markets Index, which tracks stock performances in 21 countries, was up 8% in July, helped principally by Russia and Turkey, which each posted July advances of more than 10%.
The above photo is of a new Virgin Megastore, many of which were closed down in the US during the financial crisis, being built on the busy Istiklal pedestrian street. It is somehow shocking how well the economy is doing given the tense political climate with a looming referendum next month and Kurdish violence in the southeast. Investors though are somehow used to regular bouts of violence from the Kurds, according to one analyst I interviewed recently, and after ten years being the focus, the ruling Justice and Development Party (AKP) have the economy in a place that is attractive to everyone.
Almost everyone. Of course there is still the 12 percent unemployment. That makes many Turks unhappy and is one of the reasons why AKP’s domestic popularity has gone down in recent weeks, even if the party is the favorite of markets. Still, most Turkey observers are betting on a “Yes” vote for the 12 Sept. referendum. The upcoming parliamentary elections are still a year away and AKP has time to raise their poll numbers.