Foreign bank's take on the arrests: 'Erdoğan and Şimşek gave guarantees to investors! There is a buying opportunity in the market'

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HSBC analysts noted that they see long-term opportunities despite the recent volatility in Turkish markets. The bank stated that the activity following the detention of İmamoğlu could be 'considered an opportunity' for investors. The report indicated that Turkish Airlines, Akbank, BIM, Migros, Turkcell, and Torunlar GYO are companies that stand out with a 'buy' recommendation.

In the HSBC report, it was emphasized that despite short-term challenges, Turkey's fundamental economic dynamics remain strong. The bank pointed out that authorities have provided guarantees to investors to ensure market confidence.

The report underscored that Minister of Treasury and Finance Mehmet Şimşek and Vice President Cevdet Yılmaz have reiterated their commitment to policy continuity. It was noted that Şimşek stated they would 'take every step necessary for financial stability,' and that AKP Chairman and President Recep Tayyip Erdoğan also confirmed his support for the economic management following a cabinet meeting.

KARAHAN: 'OUR MEASURES ARE MARKET-FRIENDLY'

Central Bank of the Republic of Turkey (TCMB) Governor Fatih Karahan said during an emergency meeting with banks in Turkey over the weekend that the measures taken are market-friendly. Karahan provided assurance that the TCMB would take every necessary measure to prevent major losses in the markets.

HSBC analysts stated that the most significant risk regarding Turkish bonds is the pressure from foreign exchange outflows. The report mentioned that the Central Bank views controlling foreign exchange demand and maintaining currency stability as a priority.

The bank included in its report Şimşek's recent statement that 60 percent of the demand for dollars originated from foreign investors, while 10 percent came from local retail investors. Analysts assessed that if this trend continues and local dollarization remains limited, the bond market could stabilize.

News Source: 12punto