Weekly Market Pulse: July 27‑31 Policy Balance and Dividend Champions

Investors heading into the weekend encountered a cautious optimism phase, buoyed by a 3.2% rise in liquidity flows and a 1.8% net capital inflow.

Liquidity Flows and Market Stabilizers

Borsa Gündem's weekly policy balance revealed a net cash inflow of $12.5 billion against a net cash outflow of $9.8 billion, underscoring that market equilibrium remains fragile.

Dividend Champions and Buy‑Back Breeze

■7.4% dividend yield positions ASELSAN as the week’s top dividend earner.

■6.9% dividend yield places Turkish Airlines (THY) second, while announcing a $1.2 billion share buy‑back program.

■6.2% dividend yield crowns KOÇ HOLDING, pairing strong dividends with a $800 million buy‑back commitment.

■5.8% dividend yield sees VESTEL augment its buy‑back to $500 million alongside a new product launch.

Sector Rotation and Risk Factors

The financial sector gained 2.3% following a 0.5% interest‑rate hike, while technology stocks corrected 1.7%. A low‑volatility backdrop, 0.3% FX swings, and limited geopolitical strain modestly lifted risk appetite.

Aylin Güneş – Dividend champions and buy‑back programs send a clear signal to long‑term value investors. Companies like ASELSAN and THY, offering dividend yields above 6.5%, can anchor portfolio stability through sustainable cash flow and dividend policies. However, the durability of buy‑backs and their impact on capital structure warrant close monitoring; excessive repurchases could tighten liquidity. Accordingly, weighting should favor firms with dividend yields over 6.5%, ensuring buy‑back exposure does not exceed 15% of equity.