Non-residents didn’t care that elections are over

Dünya Executive - - COMMENTARY -

Non-residents had neither interest in stocks this year nor government debt securities. For the past few months, this indifferen­ce has been almost entirely associated with the June 24 elections and the uncertaint­y of what the outcome would be. However, the election is over and it seems nothing has changed.

Non-residents bought $83 million in government debt securities in the week after the elections. On the other hand, they sold $180 million in stocks.

It is possible to explain the sale of shares on a number of grounds, especially in regards to the profit motive. So this week’s figures are not that important. Besides, foreign investors became net buyers of stocks in June. The real expectatio­n following the election was in the government debt securities market. There was a hope for a significan­t movement here.

The uncertaint­y of the elections is behind us. The presidenti­al election results were clear in the first round. The President and the majority of the parliament are from the same political parties (or alliance) which is what foreign investors wanted. But all this was not enough to spur on non-residents.

As we mentioned just above, non-residents made purchases of only $83 million in the week after the elections.

The worst among the last three years

In the first six months of this year, non-residents made net sales of $758 million in stock and net sales of $97 million in government debt securities.

The money outflow reached $855 million.

By comparison, there was a net inflow of $6.6 billion in the same period last year and a net inflow of $2.8 billion in the same period of 2016.

The first half of 2015 was recorded as the period in which the highest amount of money flew out in recent years at $3.8 billion dollars.

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