Foreign Investors' Nine-Week Bond Buying Streak Comes to an End

In the week of August 14, foreign investors made significant purchases in the Turkish stock market. During this period, there was a net inflow of $176.1 million into equities, marking the highest weekly buying in the last one and a half months. In the same week, foreign investors' interest in private sector bonds remained strong, with net purchases of $445.9 million in this asset class. However, the trend in government domestic debt securities (GDDS) changed. Foreign investors' purchases of GDDS had continued uninterrupted for nine weeks. As of this week, that buying streak came to an end, with a net selling movement observed in GDDS. This indicates a short-term rotation in investors' portfolio preferences. The increase in equity purchases can be seen as a signal that foreign investors' interest in the Turkish stock market is reviving. Strong demand for private sector bonds suggests continued confidence in corporate debt instruments. The GDDS sales may indicate weakening demand for public debt securities. These developments point to foreign investors diversifying their strategies regarding Turkish assets, with risk appetite shifting toward equities and private sector debt instruments. Market participants will closely monitor whether this trend persists in the coming weeks and whether the selling in GDDS continues. This is not investment advice.