Turkish capital market sees surge in deposit holdings in 2024

The Turkish capital market saw a substantial increase in deposit holdings in 2024, reaching ₺12.08 trillion ($338.51 billion), marking a more than 46% rise compared to the previous year.

According to the 2024 data compiled by the Turkish Capital Markets Association (TCMA), domestic investors’ Turkish lira (TRY) deposit holdings rose by 37% from the previous year, reaching ₺11.65 trillion. Meanwhile, foreign investors’ TL deposits increased by 50.3% to ₺434.7 billion.

Mutual funds also emerged as an attractive investment instrument in 2024, as the number of investors grew by over 1 million, bringing the total to 5.41 million.

Momentum slows in stock exchange as deposit holdings rise

On the other hand, investor appetite for risk declined because of rising interest rates, leading to a significant drop in the number of investors in Borsa Istanbul (BIST). The surge in initial public offerings (IPOs) and yield-seeking investments in 2023 had driven record participation, but in 2024, the number of equity investors in BIST fell sharply.

At the end of 2023, the total number of investors with equity holdings stood at 7.64 million. However, with a decline in domestic retail investors, this figure dropped to 6.84 million in 2024.

Of the total stock portfolio value in Türkiye, which amounted to ₺5.71 trillion, 37% was held by foreign investors (including non-floating shares), while the remaining 63% belonged to domestic investors.

In 2023, 54 companies went public, but this number declined to 34 in 2024. These companies raised ₺59.5 billion from capital markets through IPOs. Meanwhile, the total market capitalization of publicly traded companies increased by 34%, surpassing ₺13.42 trillion.

The total financial assets of domestic investors grew by 32%, exceeding ₺29.8 trillion, while foreign investors’ financial assets surged by 51.2%, reaching ₺3.89 trillion by the end of 2024. As a result, total financial assets in the Turkish capital market climbed by 34%, hitting ₺33.72 trillion.