BIST 100 index outperforms global indices in the first two months of the year

Despite ongoing uncertainties regarding when major central banks worldwide will begin cutting policy rates, global stock markets have reached new peaks following financial results that exceeded expectations, particularly from technology companies operating in the semiconductor chip and artificial intelligence sectors.

While new highs were seen in US, European, and Japanese equity markets after California-based chip manufacturer Nvidia reported higher-than-expected profits in the last quarter, the BIST 100 index at home also joined the global rally and refreshed its record.

The BIST 100 index has outperformed major indices worldwide with its performance since the beginning of the year.

Despite the growing uncertainty day by day regarding when major central banks will start interest rate cuts since the beginning of the year, the higher-than-expected profits of large technology companies in particular have increased risk appetite in global equity markets.

The rally that began on the New York Stock Exchange led by these companies spread to Europe and then to Japanese equity markets, while the indices also renewed their historical highs.

Looking at the performance of the first two months of the year, while the Nasdaq index gained 7.20 percent, the S&P 500 index 6.84 percent, and the Dow Jones 3.47 percent on the New York Stock Exchange in the US, the DAX 40 index in Germany rose 5.53 percent, the CAC 40 index in France 5.09 percent, and the MIB 30 index in Italy 7.34 percent on the European side. The only index to decline in the European region was the FTSE 100 index in the UK with 1.33 percent.

In Asia, the Nikkei 225 index in Japan rose 17.04 percent, the Sensex index in India 0.36 percent, and the Shanghai Composite index in China 1.35 percent, while the Kospi index in South Korea lost 0.48 percent and the Hang Seng index in Hong Kong lost 3.14 percent.

During the same period, the BIST 100 index rose 23.07 percent, outperforming these major indices, and recorded a 16.1 percent increase in dollar terms during this process.

While all sector indices have risen since the beginning of the year, the top gainer was Informatics with 103.07 percent. Looking at the main indices, the Technology index draws attention with a 67.66 percent increase.

During this period, 98 of the stocks included in the BIST 100 index rose, while 2 lost value. The most traded stocks were Turkish Airlines, Ereğli Demir Çelik, Türkiye İş Bankası (C), Yapı Kredi, and Akbank.

Among the stocks that recorded the highest increases during this period, Mia Teknoloji, Kocaer Çelik, and Akfen Yenilenebilir Enerji shared the top three spots with increases of 116.90 percent, 97.82 percent, and 90.10 percent, respectively, while Qua Granite and Hektaş were the stocks that disappointed investors, falling 24.74 percent and 4.98 percent.

The BIST 100 index rose 8.20 percent in February to finish the month at 9,193.69 points, while it also pushed its all-time high record to 9,450.48 points. When examined in dollar terms during the same period, the index gained 5.13 percent to reach 294.41 points.

When the February performance of global indices is examined, it is seen that the BIST 100 index outperformed these indices on a monthly basis as well and took the top spot.

Following the BIST 100, the February performance of Asian equity markets draws attention. The Shanghai Composite index in China is in second place with an 8.13 percent increase, and the Nikkei 225 index in Japan is in third place with a 7.94 percent rise.

During the same period, while the Nasdaq index in the New York Stock Exchange rose 6.12 percent, the S&P 500 index 5.17 percent, and the Dow Jones index 2.22 percent, the DAX 40 index in Germany gained 4.58 percent, the CAC 40 index in France 3.54 percent, and the MIB 30 index in Italy 3.48 percent. The FTSE 100 index in the UK fell 0.01 percent.

In the second month of the year at Borsa Istanbul, the banking index rose 5.12 percent and the holding index 11.70 percent. Among the sector indices, the top gainer was informatics with 53.97 percent, while the only loser was communication with 2.26 percent.

In February, 85 of the stocks included in the BIST 100 index rose, while 15 lost value. The most traded stocks during this period were Turkish Airlines, Ereğli Demir Çelik, Türkiye İş Bankası (C), Tüpraş, and Sasa Polyester.

During the same period, among the stocks that recorded the highest increases, Mia Teknoloji, Borusan Yatırım, and Ege Endüstri pleased their investors with increases of 78.77 percent, 65.61 percent, and 58.58 percent, respectively, while among the stocks that declined the most, Akcansa Çimento, İzdemir Enerji, and CW Enerji drew attention with decreases of 8.19 percent, 7.40 percent, and 6.85 percent.

While interest in Turkish assets is seen to be increasing amid a series of positive reports published by foreign investment institutions regarding Turkey, the downward trend in Turkey's 5-year credit default swap (CDS) also continues.

Turkey's 5-year CDS, which was at 700 basis points in May last year, fell to 284 basis points in February following the general elections, the new economic management taking office, and the implementation of tightening monetary policy steps within the scope of the fight against inflation.

After Turkey's 5-year CDS fell to 282.5 basis points in December 2023, its lowest level since February 19, 2020, it had risen to 331 basis points in the first month of the new year.

In addition, according to the Weekly Securities Statistics data published by the Central Bank of the Republic of Turkey (TCMB), non-residents carried out a total of 115.4 million dollars in net stock purchases from the beginning of the year to the week of February 23.

On the other hand, according to the Risk Appetite Index (REKS) data created by the Central Registry Agency (MKK) to measure risk appetite, as of February 23, the risk appetite of foreign investors was at 63.2, the risk appetite of domestic investors was at 65, and the risk appetite of all investors was 56.4.

While the REKS being above the 50 level indicates that risk appetite is high, levels below this are interpreted as risk appetite being low.