Turkish stock exchange breaks new record on low interest rates
ISTANBUL - Hürriyet Daily News
The previous record of Turkey’s stock exchange was set on Jan. 25 at 86,787 points. DHA photoThe main 100 index of Turkey’s stock exchange, Borsa Istanbul, has reached a record high at 87,500 points, as investors rushed for bank shares on historically low benchmark bond yields and rising expectations for a second credit rating.
The previous record was set on Jan. 25 at 86,787 points.
The shattered record is led by the rise of the banking index, which has approached 2 percent thanks to a drop in Turkey’s benchmark bond yields to a historical low thanks to soaring optimism for a low-interest rate environment. The benchmark bond yield retreated down to 5.12 percent in parallel with yesterday’s developments.
“The fall of interest rates down to 5.1 percent in Turkey supports the purchase in bank shares,” Işık Ökte, a Halk Investment Strategist, told Reuters. He added that the decline in the interest rates was related to inflation expectations.
Commenting on the rise in the stock exchange, Global Investment Strategy Director Gökhan Uskuay said the foreign circumstances had been an advantage for Turkey raising the possibility of a second ratings upgrade for Turkey.