Foreign Investors Launch Aggressive Buying Spree in Equities and Bonds

Foreign investors surged into Turkish equities, government bonds, and sector‑specific instruments last week, injecting fresh liquidity into the market.

Foreign Capital Surge: Equities and Bonds in Focus

■$37.5 million in equity purchases

■$196.6 million in Domestic Debt Securities (DİBS)

■$43.8 million in General Government‑Excluded Sector Instruments (ÖST)

Stock Shifts: Equities and Bonds Decline While ÖST Rises

■Equity holdings fell from $41.3369 billion to $41.1108 billion

■DİBS holdings dropped from $17.3761 billion to $16.9647 billion

■ÖST holdings rose from $3.8726 billion to $3.9014 billion

Market Impact: Foreign Demand and Liquidity Dynamics

■Foreign buying pressure keeps equity return expectations on an upward tilt

■Strong DİBS demand offsets falling bond yields, providing liquidity support

■Rising ÖST signals robust financing for non‑government export sectors

As Kerem Tufan, I see the foreign investors’ aggressive stance in equities and bonds as a double‑edged sword: it bolsters short‑term liquidity and supports asset prices, yet it also heightens vulnerability to abrupt capital reversals. Sustainable resilience will hinge on structural reforms that deepen domestic savings and expand export‑led growth, ensuring that hot‑money inflows translate into lasting economic strength rather than fleeting market euphoria.