Foreign Investors Surge into Turkish Securities: Net Buying in Equities, DIBS and ÖST

Foreign investors' tilt toward Turkish securities signals a new market phase, as weekly purchase data reveal.

Portfolio Shift: Equity Pullback

■$33.5 million in equities were bought, prompting the foreign equity stock to slide from $41,697.9 million to $41,336.9 million.

■The $361 million equity decline suggests modest external demand compared with domestic selling pressure.

Sovereign Bonds: Net Inflow

■Foreign hands acquired $1,225.5 million of State Internal Debt Securities (DIBS).

■DIBS holdings rose by $1.122 billion, moving from $16,254.3 million to $17,376.1 million.

■This underscores growing confidence in Turkey’s fixed‑income market among overseas investors.

Private‑Sector Issuances: ÖST Surge

■$1,336.6 million of General Administration‑Outside Sector Issuances (ÖST) were purchased.

■ÖST stock jumped from $2,547.2 million to $3,872.6 million, a 52.5% increase.

■The move signals strong foreign appetite for private‑sector bonds.

Liquidity Ripple Effects

■The equity stock dip indicates short‑term liquidity outflows, while the DIBS and ÖST upticks bolster long‑term capital inflows.

■In FX markets, heightened foreign demand could ease pressure on the TL, yet continued equity sell‑offs keep volatility risk alive.

Kerem Tufan – Director of Commercial Credit and Central Bank Policies: "Foreign investors’ shift toward DIBS and ÖST reflects a re‑established trust in Turkey’s sovereign and private‑sector debt markets. Yet equity disposals reveal that local investors remain cautious. The ongoing squeeze in SME credit lines and the pace of commercial credit growth demand close monitoring of how these external flows translate into domestic lending dynamics. The Central Bank’s prudent liquidity stance will be pivotal in preserving market stability while testing the durability of foreign capital inflows."