Turkish stocks have posted the longest winning streak in 11 years and the rally is probably not over yet, Bloomberg reported on Wednesday, citing investors.
A decline of 1.5 percent in the main Borsa Istanbul 100 index last week was labelled by some people as the start of a pullback in prices. But instead, investors should seize the opportunity to buy more stock, said Semih Kara of Istanbul-based money management firm Tacirler Portföy.
“Corrections are healthy and they are unlikely to be extensive for Turkish equities this time,” said Kara, whose equity-focused fund had the best returns among its peers last year, according to Bloomberg.
Increases in stock prices are, however, likely to be slower than the 40 percent surge since the start of November, he said.
Turkish shares have posted the gains after President Recep Tayyip Erdoğan installed a new central bank chief and treasury and finance minister. Back-to-back interest rate hikes followed, stabilising the lira and encouraging inflows of foreign investment.
The Turkish stock market is still attractive, and investors should focus on shares like Coca-Cola’s Turkish unit and home appliance maker Arçelik, said Ekaterina Iliouchenko, a manager at Union Investment Privatfonds in Frankfurt, Bloomberg reported.