Ali Bahçuvan/Economist In a market where foreign investors are so dominant, there will not be sharp falls unless a new global crisis breaks out.
The Analysis of the Rise in Markets
Ali Bahçuvan/Economist
In a market where foreign investors are so dominant, there will not be sharp falls unless a new global crisis breaks out.
As İMKB (Istanbul Stock Exchange) came close to 65,000 levels, what else can we say about this rise which is being widely discussed? When we look at the shares having impact on the İMKB index, we see that the rate of foreign investors has climbed to around 80 especially in İMKB-30 shares.On the other hand, in banks’ and large companies’ shares that affect the ISE-30 most, this rate has already exceeded 90 percent. In a market where foreign investors are so dominant,it cannot be said that İMKB may change much inparallel with domestic dynamics unless a new wave of global crisis emerges. In other respects, if a large demand arises at these prices for shares at İMKB in which foreigners have a position, then these investors will not hesitate to sell shares out. That is to say, there are two dangers for İMKB: A second wave of sell-outs that can spread all over the world, or a possible boom in demand from domestic investors.
If domestic investors’ demand can be shifted to proper directions, a huge resource for the economy will be actually transferred to capital markets and to real sector instead of going to the profit realizations by foreign investors. In this respect,the Public Offering Campaign is a timely, proper, and propitious initiative. However, we couldn’t take part in this campaign due to somemissing points in the effort. In order to attract domestic investors into the market, arrangements regarding past grievances should have been made and possible future grievances should be prevented through laws.On the other hand,public offerings by KOBİs(small and medium sized enterprises), which must be actually at the root of the Public Offering Campaign, and granting small companies the opportunity to go public have been made completely impossible after creating Class A, B, and C shares. My solution offer for this issue is as follows: in public offerings hereafter, those companies that do not designate preference shares in management and profits and grant equal rights to every shareholder, should be allowed to be traded as Class A sharesin the following 2 or 3 years after the public offering, regardless of any further criteria.
It is claimed that another reason why there are so many foreign investors in markets is domestic investors’ staying away from markets because of manipulation. İMKB has announced it would take some measures with regard to transactions at the stock exchange, in order to prevent manipulation. For instance; the single-step practice, invisibility of exchange transactions and the anonymity of buyers and sellers… When I saw these practices, I remembered the year 1994.Some issues existed even at that time. How much we have improved since that day and how transparent a market we came to have… Now I think it is useless for investors to look back. There is no need to spend so much effort in order to fight against manipulation. On the one hand, we adopt practices that can change all the balances in the market while on the other hand, we make statements like “manipulation does not affect even 5 percent of the market” and thus run into a huge contradiction.
The new Turkey has to be more active, stronger and have a greater say in the world. This is Turkey’s role under current circumstances. Even if others do not want to concede this role, balances in the world require it. Capital markets have the power that can lend Turkey the greatest impetus on this road.
Turks have demonstrated how much they long for change and novelty in the constitution referendum. Even if they have not fully understood the issue and which direction it could take the country to, people have shown politicians that they want “novelty and change.” This has always been the same. From Atatürk’s alphabet and clothing reforms onward, Turks have always quickly adapted to change. Even when Özal was at his strongest,political ban on former politicians have been removed through a referendum. What’s the point in forcing a society that does not like clinging to the past and is always open to progress and novelty? If the opposition prepared and submitted a constitution that forced change on the ruling party, wouldn’t that initiative have changed the opposition’s vision?
Although we have not wanted to undertake opposition’s rolein capital markets, we came to assume this role. There is such a huge fear from the competent authorities and such a great expectation of interest that, we have to represent also other voices that cannot find an outlet. However, our understanding of opposition does not entail calling every action as wrong. We have shown on every occasion that we back correct practices all the way. When the opposition is not one step ahead of the government, then the ruling party will never change. Man, by his very nature, tends to believe the future always promises better things. Since nothing will change in the status quo, it is all too natural to vote for novelty, hope, and change.
Roles that have been previously assigned to Turkey in the world are no longer sufficient. The entire world except us has understood this. The new Turkey has to be more active, stronger and have a greater say in the world. This is Turkey’s role under current circumstances. Even if others do not want to concede this role, balances in the world require it. When a society progresses individually, politics, economy, and democracy will also have to further develop. Even if the government lags behind the society, it will have to catch up with the society at some point.For this reason, time has come for Turkey to make new calculationsnow.
The government itself cannot lag behind this momentum. Just as it exhibited at the very first day after coming to power, it has to prepare a new action plan and launch this plan when it is in power. Knowing that the society is in need of change, new employment projects should be created. High unemployment rate in the young population is the most dangerous element in socio-economic terms.
Capital markets have the power that can lend Turkey the greatest impetus on this road. In this respect, in addition to imitating practices across the world, new instruments should be created as well. There are a lot of things to be done for this purpose.On my own part, I have prepared a project regarding “AgricultureInvestment Trusts”. I hope and believe that this project canbring together the agricultural sector which may activate the greatest potential in capital markets and national economy, thereby making a huge contribution to employment, production, and growth. Of course, its acceptance by markets will depend on the profitability and benefits to be generated. Hoping it will succeed… The Analysis of the Rise in Markets
Ali Bahçuvan/Economist
In a market where foreign investors are so dominant, there will not be sharp falls unless a new global crisis breaks out.
As İMKB (Istanbul Stock Exchange) came close to 65,000 levels, what else can we say about this rise which is being widely discussed? When we look at the shares having impact on the İMKB index, we see that the rate of foreign investors has climbed to around 80 especially in İMKB-30 shares.On the other hand, in banks’ and large companies’ shares that affect the ISE-30 most, this rate has already exceeded 90 percent. In a market where foreign investors are so dominant,it cannot be said that İMKB may change much inparallel with domestic dynamics unless a new wave of global crisis emerges. In other respects, if a large demand arises at these prices for shares at İMKB in which foreigners have a position, then these investors will not hesitate to sell shares out. That is to say, there are two dangers for İMKB: A second wave of sell-outs that can spread all over the world, or a possible boom in demand from domestic investors.
If domestic investors’ demand can be shifted to proper directions, a huge resource for the economy will be actually transferred to capital markets and to real sector instead of going to the profit realizations by foreign investors. In this respect,the Public Offering Campaign is a timely, proper, and propitious initiative. However, we couldn’t take part in this campaign due to somemissing points in the effort. In order to attract domestic investors into the market, arrangements regarding past grievances should have been made and possible future grievances should be prevented through laws.On the other hand,public offerings by KOBİs(small and medium sized enterprises), which must be actually at the root of the Public Offering Campaign, and granting small companies the opportunity to go public have been made completely impossible after creating Class A, B, and C shares. My solution offer for this issue is as follows: in public offerings hereafter, those companies that do not designate preference shares in management and profits and grant equal rights to every shareholder, should be allowed to be traded as Class A sharesin the following 2 or 3 years after the public offering, regardless of any further criteria.
It is claimed that another reason why there are so many foreign investors in markets is domestic investors’ staying away from markets because of manipulation. İMKB has announced it would take some measures with regard to transactions at the stock exchange, in order to prevent manipulation. For instance; the single-step practice, invisibility of exchange transactions and the anonymity of buyers and sellers… When I saw these practices, I remembered the year 1994.Some issues existed even at that time. How much we have improved since that day and how transparent a market we came to have… Now I think it is useless for investors to look back. There is no need to spend so much effort in order to fight against manipulation. On the one hand, we adopt practices that can change all the balances in the market while on the other hand, we make statements like “manipulation does not affect even 5 percent of the market” and thus run into a huge contradiction.
The new Turkey has to be more active, stronger and have a greater say in the world. This is Turkey’s role under current circumstances. Even if others do not want to concede this role, balances in the world require it. Capital markets have the power that can lend Turkey the greatest impetus on this road.
Turks have demonstrated how much they long for change and novelty in the constitution referendum. Even if they have not fully understood the issue and which direction it could take the country to, people have shown politicians that they want “novelty and change.” This has always been the same. From Atatürk’s alphabet and clothing reforms onward, Turks have always quickly adapted to change. Even when Özal was at his strongest,political ban on former politicians have been removed through a referendum. What’s the point in forcing a society that does not like clinging to the past and is always open to progress and novelty? If the opposition prepared and submitted a constitution that forced change on the ruling party, wouldn’t that initiative have changed the opposition’s vision?
Although we have not wanted to undertake opposition’s rolein capital markets, we came to assume this role. There is such a huge fear from the competent authorities and such a great expectation of interest that, we have to represent also other voices that cannot find an outlet. However, our understanding of opposition does not entail calling every action as wrong. We have shown on every occasion that we back correct practices all the way. When the opposition is not one step ahead of the government, then the ruling party will never change. Man, by his very nature, tends to believe the future always promises better things. Since nothing will change in the status quo, it is all too natural to vote for novelty, hope, and change.
Roles that have been previously assigned to Turkey in the world are no longer sufficient. The entire world except us has understood this. The new Turkey has to be more active, stronger and have a greater say in the world. This is Turkey’s role under current circumstances. Even if others do not want to concede this role, balances in the world require it. When a society progresses individually, politics, economy, and democracy will also have to further develop. Even if the government lags behind the society, it will have to catch up with the society at some point.For this reason, time has come for Turkey to make new calculationsnow.
The government itself cannot lag behind this momentum. Just as it exhibited at the very first day after coming to power, it has to prepare a new action plan and launch this plan when it is in power. Knowing that the society is in need of change, new employment projects should be created. High unemployment rate in the young population is the most dangerous element in socio-economic terms.
Capital markets have the power that can lend Turkey the greatest impetus on this road. In this respect, in addition to imitating practices across the world, new instruments should be created as well. There are a lot of things to be done for this purpose.On my own part, I have prepared a project regarding “AgricultureInvestment Trusts”. I hope and believe that this project canbring together the agricultural sector which may activate the greatest potential in capital markets and national economy, thereby making a huge contribution to employment, production, and growth. Of course, its acceptance by markets will depend on the profitability and benefits to be generated. Hoping it will succeed…