Investor exodus hits Borsa Istanbul: 20% drop since May

Turkish stocks have experienced a sharp downturn since their May peak, with Borsa Istanbul entering a bear market and declining by 20% in dollar terms. Recent weeks have witnessed a significant outflow of investors, signaling a waning interest in the Turkish market.

According to data from Türkiye’s Central Securities Depository (CSD), the number of equity investors decreased by 81,783 to a total of 7.35 million as of Sept. 13. Additionally, the value of stocks fell from ₺13.22 trillion ($389.2 billion) to ₺13.09 trillion.

Investor departure and foreign sales

Foreign sales, which began in mid-July, and the shift of savings into deposit accounts are to blame for the decline in investor numbers. The stock market had previously risen due to foreign investment expectations, reaching a record high in May 2024 with 8.34 million investors.

However, since mid-July, the picture has changed with ongoing foreign sell-offs and increased deposit rates, leading to approximately 1 million investors exiting the market over the past two and a half months.