In the last 1.5 years spent in the shadow of the pandemic, the rapid recovery in the economy, global developments and expectations for the coming period have caused significant changes in the investment preferences of domestic residents. According to the data of the Turkish Capital Markets Association (TSPB), the financial assets of domestic residents increased by 1 trillion lira in the last year as of the end of July, reaching the highest level in its history with 5 trillion 831 billion liras.
INCREASED 500 BILLION TL IN 3 MONTHS
The second quarter of the year was the period in which both the growth and the transition to TL in the financial assets of domestic residents accelerated. The economic growth, which will be announced on September 1 and expected to reach 25-30 percent, was also reflected in the preferences of investors for the second quarter of the year. According to TSPB data, financial assets of domestic residents increased by more than TL 500 billion in the second quarter of the year. In other words, half of the 1 trillion lira increase in the last 1 year was realized in the second quarter of this year.
TRANSITION TO TL ACCELERATED
It was noted that in the second quarter of the year, when financial assets grew rapidly, the transition to TL also accelerated. According to the data, TL deposit volume, which was 1 trillion 515 billion TL at the end of March this year, increased to 1 trillion 716 billion TL at the end of July. In this period, the increase in TL deposits was 201 billion TL. Increase in interest rates, withholding tax cuts and optimistic expectations for the upcoming period enabled domestic investors to return to TL. The share of TL deposits in the total increased to 29.5 percent. At the end of March, the share of foreign currency deposits fell to 34.6 percent, while in July it fell to 33.7 percent.
INTEREST IN THE STOCK EXCHANGE
The interest in Borsa Istanbul, where records were broken in public offerings and the number of domestic investors, continues despite losing momentum. The number of domestic investors in the stock market, which was 1 million 606 thousand in July 2020, reached its historical peak with 2 million 661 thousand in April this year. The number of domestic investors, which declined after this date, reached 2 million 394 thousand people at the end of July. Despite the recent decline, as of the end of July, the number of domestic investors who came to the stock market in the last 1 year was 788 thousand. The size of the domestic investor’s stock portfolio, which was 273.5 billion liras in July 2020, went up to 418.1 billion liras in March this year and decreased to 396 billion liras in July.
IPO RECORD BROKEN
This year’s record public offerings were effective in the increase in the number of domestic investors in Borsa Istanbul. In 2021, 32 companies offered their shares to the public and generated 14.6 billion liras in revenue. The demand for these public offerings was 96.2 billion liras. With the completion of the share sale of Nasmed, YEO Teknoloji and Orçay within a week, the number of public offerings will reach the record level in 2020 with 35.
HIGHEST REAL INCOME IN JULY
According to the news of Oktay Özdabakoğlu from Sabah; When reduced with the Consumer Price Index (CPI), the highest monthly real return in July was realized in Government Domestic Debt Securities (GDS) with 0.11 percent. When it is reduced with the CPI, the deposit interest (gross) was 0.52 percent, the dollar was 1.8 percent, the gold bullion and euro was 3.55 percent and the BIST 100 index was 5.14 percent. In quarterly evaluations, gold bullion was recorded as the investment instrument that provided the highest real return to investors by 3.53 percent when reduced by CPI. According to the six-month evaluation, the dollar provided the highest real return to its investors with 7.22 percent when it was reduced with the CPI. When financial investment instruments are evaluated on an annual basis, the euro provided the highest real return to its investors with 9.34 percent when reduced by CPI.
PORTFOLIO MANAGEMENT COMPANIES MANAGE 445 BILLION LIRA
The portfolio size of the portfolio management sector, which was TL 347.7 billion as of the end of June last year, increased by 28 percent to reach TL 445.6 billion at the end of June this year. According to TSPB data, the total portfolio of TL 364.6 billion as of the end of 2020, increased by 22 percent in the first six months of the year, due to the rapid growth in mutual funds. According to the data, a total of 1,203 mutual funds, of which 395 are pension funds and 808 are securities, are managed by portfolio management companies.
The total portfolio managed by portfolio management companies, reaching TL 445.6 billion as of the end of June; TL 395.4 billion consists of collective portfolios, while TL 51.2 billion consists of individual portfolios of real and legal persons. Investment funds, which were 164.2 billion TL in June 2020, increased by 28 percent and reached 209.6 billion liras as of the end of June this year. In the second half of 2020, mutual funds, which declined to 151.9 billion liras at the end of the year, experienced a rapid growth of 38 percent in the first six months of this year. The number of real and legal investors, to which portfolio management companies provide individual portfolio management services, increased by 676 people compared to the end of 2020 and reached 3,780 as of the end of June this year.