Monday, 13 January 2020

Turkey Stocks Trade Near Record in Sign of Renewed Risk Appetite - Bloomberg

Turkey Stocks Trade Near Record in Sign of Renewed Risk Appetite - Bloomberg:

Turkish stocks continued their rally Monday as a deep discount to emerging-market peers and an improved outlook from the country’s banks enhanced their appeal to investors with a renewed appetite for riskier assets.

The Borsa Istanbul 100 Index rose as much as 1.9% to 120,899.69 on Monday, surpassing the benchmark’s record closing high and adding to their advance after emerging as the surprise winners last week amid the fallout from the Iran-U.S. crisis. Shares in Turkish banks and steelmaker Erdemir led the benchmark index higher.



Istanbul stocks are trading at a discount of almost 50% to their emerging-market peers. The imminent signing of a partial U.S-China trade deal is stoking optimism, adding to upbeat sentiment from the ebbing of Middle East tensions. Gains in the local currency and positive news on the economy encouraged the flow of cash to Turkish assets, said Ipek Ozkardeskaya, a senior market analyst at Swissquote Bank.

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