The foreign exchange rate of foreign investors in the stock market, which reached 67 percent at the end of 2012, dropped to an all-time low with 27.85 percent as of May 25.
While the foreign exchange rate in the stock market was in the range of 60-65% until the beginning of 2020, it followed a downward trend after this date. The foreign exchange rate decreased to 49 percent at the end of 2020, to 40 percent by the end of 2021, and to 29 percent by the end of 2022.
Foreign outflow in the stock market continued in 2023. When the CBRT’s weekly securities statistics are analyzed, it is observed that the net share sales of foreign investors since the beginning of the year exceeded 1 billion dollars as of May 5th.
The foreign investor completed the last four weeks with a total of $385 million in net share sales.
While the foreign investor owned about two-thirds of the stocks in circulation until the beginning of 2020, according to the latest data, the amount of shares owned by foreigners in the stock market decreased to one-third.
Foreign investor inflow to Turkey had accelerated after the three major credit rating agencies upgraded the country’s credit ratings in 2003-2012.
Despite the reductions in country credit ratings after 2016, the foreign exchange rate in the stock market remained at horizontal levels until mid-2020. Although the foreign exchange rate remained at an average of 65 percent between 2012 and 2020, it was observed that the holding period of the shares shortened significantly according to TÜYİD data.
Accordingly, 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.