TURKISH STOCK DELIVERS MASSIVE RETURNS
The Turkish stock and bond market is delivering world-beating returns to investors as other countries struggle during the European financial crisis.
Returns on the dollar are over 30 percent in 2012 making Turkey the best performing equity market after Egypt, which is great news for the country.
Jeff Chowdhry from F&C Investments said: “In the context of what’s around it, Turkey looks in pretty good shape. It’s a country with high nominal rates and relatively stable political environment and that is attracting investors.”
Central bank data shows that foreign fund managers have poured almost $8 billion into Turkish bonds this year, while stock markets have taken in a net $2 billion. According to the monthly survey from Bank of America/Merrill Lynch, Turkey was investors’ second biggest overweight position in emerging markets last month.
Turkey is currently proving to be a great investment in the current economic climate. As other countries struggle with debt Turkey is showing great promise, especially in property. With new laws in place investors from all over the world are now purchasing real estate in the country taking advantage of great investment opportunities.
As well as property in Turkey, Japanese retail investors have placed a record $2 billion into Turkey via special bonds called uridashi.
Emerging markets strategist at UBS, Manik Narain, commented: “There is a desire globally to lap up the yield Turkey has to offer, especially as easing inflation and the current account deficit have strengthened central bank credibility. Within emerging markets Turkey offers some of the highest yields.”
With America and the EU suffering from financial crisis, investors are now looking for other places to invest and Turkey is proving to be a great asset.