2023-10-31 23:37:06
Turkish stocks are regarding to record the largest decline in seven months due to geopolitical tensions
Turkish stocks are heading towards recording the largest monthly decline in seven months, following geopolitical concerns led to investors reaping the profits they made in the recent rise.
The Borsa Istanbul 100 index fell 7.5% in October, recording the largest monthly decline since March, following gaining more than 80% since the elections were held in May. The lira has lost 3% of its balance once morest the US dollar since the end of last September.
The fall of the stock market last month halted the five-month rise of Turkish stocks, as the tensions taking place in the Middle East and the impact of the Israeli war on the Gaza Strip affected the appetite of foreign investors, and the strategy of local investors towards buying stocks to hedge once morest inflation came under pressure with the rise in… Deposit interest rates.
Foreign investors recorded a net sale of $358 million in Turkish stocks from the beginning of the month until October 20, and their withdrawals are expected to record the largest outflow since May, according to the US Bloomberg Agency.
On the other hand, high interest rates on deposits appear attractive to investors looking to protect the gains they have achieved this year at a time of increasing risk aversion. The central bank raised interest rates by 500 basis points last Thursday, to 35%.
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