Business

Call from Borsa Istanbul to “head towards capital markets”

Borsa Istanbul General Manager and Board Member Korkmaz Ergun said, “We need to steer our companies from the banking system to the capital markets a little more, and to be able to benefit more from the opportunities offered by the capital markets.”

According to the statement made by the Turkish Capital Markets Association (TSPB), Korkmaz Ergun addressed the participants at the opening meeting held online due to the 21st Ordinary General Assembly of TSPB.

Ergun stated that TSPB has made significant contributions to the growth of the capital market and the development of brokerage activities for 20 years and said, “As the stock market, we will continue to work for our common goals, together with the union, which plays a strong role in both the development of the market and the improvement of the legislative infrastructure.”

Emphasizing that, together with the brokerage houses, Borsa Istanbul provides all services uninterruptedly with great efforts and sacrifices, despite the epidemic process, Ergun said, “As the stock market, we continued to provide all services uninterruptedly together with the brokerage houses that are our members, and we have really made great efforts and sacrifices for this. As the industry, we passed a very serious test and we were able to adapt to changing conditions quickly.”

Reminding that they had a busy year in terms of public offerings, Ergun said:

“Our companies from different sectors participate in the capital market and reach their investors. Our investors become partners with companies through you and show their willingness to take part in the future of our companies.

As a country, in order to achieve a sustainable growth, we need to direct our companies, which are one of the most important actors of growth with investment, employment, production and exports, towards the capital markets a little more from the banking system, and be able to benefit more from the opportunities offered by the capital markets.

Our expectation from our brokerage houses that make this referral is to offer the right company to the public at the right time, at the right price. Problems to be experienced and negligence in this process harms the public offering climate.”

“SENSITIVITY SHOULD BE DISPLAYED IN APPLICATION OF RESEARCH AND ANALYST REPORTS PRINCIPLES”

Emphasizing that Borsa Istanbul organizes events to raise awareness on financial literacy and publishes videos on social media, Ergun said, “Please learn financial information and explanations from the right sources, and follow the companies on the Public Disclosure Platform. Examine the research reports of the brokerage houses you work with. Listen to the advice of your brokerage houses and investment consultants, and evaluate your savings according to this information. Strengthen your financial literacy level. Do not rely on social media.”

Reminding that the “Research and Analyst Reports Principles” published by the TSPB in February is a very important study within the scope of financial literacy, Ergun asked the intermediary institutions to show the necessary sensitivity in the implementation of these principles and stated that as Borsa Istanbul they are ready to provide all kinds of support in this regard. Ergun emphasized that the focus of the services and new products they offer as Borsa Istanbul will be in line with the demands and needs of the market, and that they will always take market-friendly steps.

“TSPB SHED LIGHT TO THE DEVELOPMENT OF CAPITAL MARKETS FOR 20 YEARS”

Tevfik Eraslan, Chairman of the Board of TSPB, said, “This 20 years, which can be called the period of ‘change’ in terms of world history, has also been the history of change and transformation in terms of our capital markets.”

Eraslan pointed out that the TSPB has been working in coordination with its members and stakeholders for 20 years to shed light on the development of capital markets.

“As TSPB, we believe that we should not limit the sphere of influence of our capital markets to our country in the next 20 years, but should also expand it at the regional and international level. In this sense, we aim to play a more active role in the financing of investments by creating a ‘financial ecosystem’ that has a wide investor base and product diversity, integrated with the global finance world, as in the examples of developed countries, and to provide more added value to the development of our country with our ideas and actions.

I believe that we will create capital markets of the depth and size we target, with the support of our stakeholders. At this point, as the union management, we continue our efforts to develop medium and long-term solutions in cooperation with all capital market institutions and our members by focusing on the main problems of our sector. With the support of our market stakeholders, we will continue our activities with great devotion, determination and determination in order to achieve our country’s sustainable growth goals, to achieve growth through capital markets, and to ensure that our country has a financial infrastructure that competes with the world. With this effort and motivation, I wholeheartedly believe that we will get closer to the goal of making Istanbul a center of attraction in the international financial arena.”

“THE YOUTH LEANING TO CAPITAL MARKETS IS HOPING”

Eraslan, who stated that there was a period in which investor interest and demand increased in the capital markets in Turkey in parallel with the global markets, informed that as of the end of April, the number of stock investors reached historical record levels with 2 million 674 thousand. Eraslan stated that he sees the individual investors participating in the stock market in the last year as young people from all over Turkey as promising for the future of the capital markets.

Emphasizing that the revived public offerings in 2020 broke a record this year, Eraslan said, “In Borsa Istanbul, where public offerings of 8 companies took place last year, the size of the resources provided to the real sector through public offerings was ₺1.1 billion. With the impact of the record demand from domestic investors for public offerings, many companies entered the public offering process this year. Since the beginning of the year, 14 companies have been offered to the public. The record of recent years was broken with a public offering of approximately ₺7.85 billion. I anticipate that the public offering wind, which has been on the rise with the epidemic, will continue in the increasing trend in the second half of 2021. I believe that the interest of investors in the stock market will also increase with every new company to be offered to the public.”

Emphasizing the importance of increasing investor satisfaction in this process where investor interest is very intense, Eraslan said that informing investors and increasing financial literacy are of vital importance for the development of capital markets.

Stating that they give priority to protecting and informing investors, Eraslan said, “We regret to follow that individual investors have been misled and victimized by the comments and recommendations made through social media and similar communication channels. All sector stakeholders have the responsibility to prevent new victims from occurring in the capital markets.”

Source: NTV / Translated by Irem Yildiz

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