Foreign Funds Flock to **Tüpraş** and **Turkish Airlines** as They Exit **Yapı Kredi** and **Akbank**

In July, foreign portfolio managers turned their attention to Turkey's energy and aviation giants while pulling back from the banking sector.

New Direction of Foreign Flows: Tüpraş and Turkish Airlines (THY)

The shift toward Tüpraş and Turkish Airlines (THY) stems from sector‑focused value strategies and the appeal of dividend and buyback policies. Tüpraş's low price‑earnings multiple and THY's improving restructuring outlook have prompted foreign funds to rebalance their holdings.

Drivers Behind the Exit: Yapı Kredi and Akbank

Conversely, foreign investors increased sales of Yapı Kredi and Akbank shares. Macro‑economic uncertainty, rising credit risk premiums, and a tightening rate environment have spurred the outflows from these two banks.

Core Metrics for Value Investors

■Net foreign buying in Tüpraş rose %12, reaching $2.3 billion for the month.

■Foreign purchases of THY grew %9, totaling $1.8 billion, driven by its attractive price‑to‑book ratio.

■Foreign sales of Yapı Kredi and Akbank fell %7 and %6 respectively, with total outflows of $1.5 billion.

■Dividend yields and share‑repurchase programs support investor interest, with Tüpraş at %5 and THY at %4.5.

Aylin Güneş – The redirection of foreign capital toward the energy and aviation sectors signals a clear opportunity for long‑term value investors. Tüpraş and THY's robust dividend policies and buyback programs make them attractive in a low‑volatility environment for portfolio diversification. Meanwhile, the outflows from Yapı Kredi and Akbank reflect heightened credit risk premiums and the impact of rising rates; these stocks may face short‑term pressure, but their dividend yields and potential recovery scenarios warrant a longer‑term perspective.