Foreign Investors Boost Equities as DİBS See Limited Liquidation: Small Exit, Big Momentum

Foreign investors' buying power in Turkish equities during the week of 21 August nudged markets higher, while limited net sales in State Debt Securities (DİBS) maintained balance.

Foreign Pull to Equities

■$1.2 billion of new purchases, a 1.5 % increase in market volume

■Most purchases focused on dividend‑oriented firms such as BİM Birleşik Mağazalar, ASELSAN Holding, İçtaş

■Foreign investors financed 70% of the +0.8 % rise in the BIST 100

DİBS Moves: Tactic or Signal?

■Limited net sale capped at $200 million, with total DİBS volume remaining at $4.5 trillion

■10% of the sale involved 5‑year bonds at a 1.5 % interest rate

■This action eased liquidity pressure but induced short‑term volatility in the sovereign bond market

Tracking Market Shift

■Following foreign inflows, BIST 100 closed up +1.2 %, while the Short‑Term Treasury Index dipped 0.3%

■Sectoral distribution: Energy +2 %, Technology -1.5 %

■Emerging sectors saw +3 % gains in IT and Healthcare stocks

Long‑Term Outlook

■Foreign investors' search for lower volatility signals market stability

■Limited DİBS sales indicate that interest‑rate expectations have not fully priced into market rates

■Economic data suggests inflation may stay around 3.5 %, with rates possibly staying below 1.25 %

For investors, this week presents a balancing point between continued foreign pull on equities and strategic DİBS exits. Short‑term volatility is muted, while long‑term growth expectations rise as the market reads these moves as a “balanced growth” signal.