Some foreign investors cashing out in February
In February, foreigners became net sellers both in the stock market and government debt security after a large amount of purchases were made in January. The amount raised for capital increases was also effective in this.
Although the data for February 1 is included in the sum for February, this amount mostly represents the realization in January. February 1 data consists of the sum of the transactions made on January 28, 29, 30, 31 and February 1. Therefore, the inflow on February 1 also belongs to January. Except for the exit in the first week of January, there was a continuity of inflow in the stock market over the remainder of the month. From January 4 to February 1, there was a net inflow of $1.4 billion.
In this period, when foreigners heavily purchased stocks, prices in the stock market went up significantly. However, there was a break in the trend in February. Foreigners sold $105.6 million in the first week and another $ 63.7 million in the second.
Despite the sales, the share of non-residents’ stock purchases over the first month and a half of the year amounted to net posi-
tive of $1.2 billion.
Ex ts from government debt secur t es
Non-residents generated a net total of $638 million in government domestic debt securities in the first one and a half month period. It was noted that net purchases were made in only one week of the seven-week period. The other six weeks were all about net sales. Net inflows including stocks and government debt securities in the first one and a half month period of the year totaled $528 million.
Far from be ng enough for Turkey
The money that came in to Turkey over a month and a half was only half a billion dollars! Of course, this is the amount of portfolio investment. In addition, there are direct investments and borrowing in the banking system. They are separate figures which show up in the balance of payments. However, the foreign exchange that foreign residents bring as a portfolio investment through the purchase of shares and government debt securities is of course important. And half a billion dollars over one and a half months is worrisome.
We give almost the highest interest in the world but we cannot attract the savings of people in developed countries looking for smart investments. Some countries have negative interest while we’re giving 20 percent interest, but nothing happens. Do we ever wonder why a foreign fund does not prefer Turkey even though it can get the same interest it would over 10 years in another country in one year in Turkey?