The foreign exchange rate, which was 67 percent at the end of 2012, decreased by 28.5 percent as of April 6, 2023 and reached the lowest level possible. The rates, which hovered around 65 percent in mid-2020, continued to decline sharply until today.
After 2016, there were reductions in country credit ratings, while the foreign exchange rate remained at the same level until mid-2020. Although the foreign exchange rate remained at an average of 65% between 2012 and 2020, the holding period for the shares was significantly shortened.
Holding period of industrial shares decreased from 2 years to 1 month
According to TÜYİD data, while the holding period for foreigners was 389 days at the end of 2012, this period decreased to 74 days at the end of 2020 and 29 days at the end of 2022.
In the last 10 years, the holding period of foreigners has decreased to less than one in 10, and a decrease has been observed in domestic investors, although not as much as in foreigners. The holding period of domestic investors, which was 46 days at the end of 2012, decreased to 27 days at the end of 2022.
The holding period of foreign investors' shares, which was up to 639 days at the end of 2012, decreased to 28 days by the end of 2022 within 10 years.
The longest-term stock investments of foreigners are concentrated in trading stocks. At the end of 2022, the holding period of the shares in the BIST-TRADE sub-index is 89 days, well above the 29-day period for BIST-ALL. However, this period is still well below the 837-day average at the end of 2012.
The stocks held by foreigners for the shortest time were technology stocks with an average of 18 days in 2022.
Stock Exchange ranked first in investment preferences
According to the data of the Turkish Capital Markets Association, investments of non-residents in Turkey stood at TL 1.27 trillion as of the end of February 2023. Stocks make up the largest portion of total investments, with 54 percent, while deposits account for 44 percent.
Bond-bill investments of non-residents, on the other hand, have a very low share of 2 percent from the total.
While the total number of investors in the stock market exceeds 4 million, the share of foreigners is below 1 percent.
According to MKK data, as of the end of March 2023, the total number of investors in the stock market reached 4.2 million, while the number of foreign investors remained at 16,377. While the share of foreign investors in the total number of investors was low at 0.39 percent, this rate was 0.45 percent at the end of 2012.
Although the number of foreign investors in the stock market is low, the foreign exchange rate data is followed more closely since the amount of investments is higher.
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