Foreign investors are increasingly buying Turkish equities through rapid “fast-track” share sales conducted by major shareholders, as they look for value in a market facing domestic political turbulence and spillover effects from the conflict involving Iran, according to Bloomberg reporting.
Major shareholders in eight listed companies have sold more than $1.2 billion worth of shares since January through accelerated bookbuilding transactions, a mechanism that allows large stakes to be sold quickly to institutional investors.
Sharp rise in deal activity
Data compiled by Bloomberg shows that activity in these transactions has increased significantly, with volumes rising by more than 70% in US dollar terms compared with the same period last year.
In several cases, sellers increased the number of shares offered in order to meet strong investor demand, highlighting renewed appetite for exposure to Turkish equities despite ongoing macroeconomic and geopolitical uncertainty.
Market volatility meets valuation interest
While Turkey’s financial markets continue to face pressure from internal political developments and regional instability, investors appear to be focusing on perceived value opportunities in listed companies.
The surge in accelerated share sales suggests that institutional buyers are willing to absorb large blocks of stock when they are offered at attractive pricing levels.
Strong demand despite risks
The trend points to a widening gap between short-term market risks and longer-term valuation strategies among foreign investors.
Despite volatility, demand in accelerated offerings indicates sustained interest in selected Turkish equities, particularly when large shareholders choose to divest stakes quickly.
Source: CNA
Also read: Turkish lira falls to historic low against US dollar
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