Local Turkey

The number of domestic investors reached an all-time high: Capital Markets Board

Organized by the International Organization of Securities Commissions (IOSCO), the fourth World Investor Week, which will take place on 16-21 November this year, started with a bell-ringing ceremony at Istanbul Stock Exchange.

Speaking at the opening of World Investor Week which is organized with the cooperation of Capital Markets Board (CMB), Istanbul Stock Exchange and Capital Markets Association of Turkey (TSPB), Ali Fuat Taskesenlioglu CMB noted that this year’s events were held in the shadow of Covid-19, and pointed out that the uncertainties regarding the epidemic clearly demonstrated how important it is to use limited information effectively and manage risk correctly.

Taskesenlioglu stated that the search for alternative returns, new public offerings, the ease of opening an account and making transactions in the digitalized world significantly increased investors’ interest in the stock market.

‘’According to CRA data, the number of domestic investors, which has been increasing for 15 months, approached 1.9 million and reached an all-time high. In the last year, the portfolio value of equity investors increased from ₺380 billion to ₺600 billion. Although it is a pleasing development to show, there are issues that need to be carefully considered in terms of various fraudulent activities that these investors may be exposed to.’’

Noting that they constantly monitor unusual price and quantity movements and market-distorting activities, Taskesenlioglu emphasized that their stance on punishing manipulation in the harshest way continues.

‘’Our surveillance unit follows social media channels such as Facebook, Twitter, Instagram, Internet and forum sites on the stock exchange and even apps like WhatsApp, Telegram. Necessary measures are taken by holding simultaneous board meetings, by entering these groups by infiltration, so to speak in case of reasonable doubt.’’

‘’We witness investors who do not even know the trade name of the company.’’

CMB President Taskesenlioglu stated that during the investigations made within the scope of the complaints made to the Board, investors witnessed that they did not even know the trade name of the company they invested in, and that their information about the company was only a stock exchange code.

‘’However, investors should get to know the companies they are investing in, It is very important that they examine the annual reports, financial statements, general view of the industry and the position of the company in the sector.

Investors invest all their savings in the stock market; unfortunately, we see that they do not show enough sensitivity. In this context, we recommend our investors to closely follow PDP notifications. In addition, I would like to remind you that they should get their investment advice from institutions authorized by the CMB.’’

Taskesenlioglu underlined that the protection of investors is one of the top priorities of the CMB and said:

‘’I would like to emphasize that with the new regulations introduced in our market this year, it is primarily aimed at protecting investor rights.’’

Providing information about these new regulations, Taskesenlioglu said:

‘’One of the issues that we put emphasis on in terms of protecting the rights of investors is to strengthen the investment understanding of the savers, to create an environment that will enable them to make conscious investments and to make healthy investment decisions.’’

Taskesenlioglu talked about the importance of increasing financial literacy in terms of market investments and explained their support in this regard.

Stating that investors are the most important actors to be taken into consideration in solving the problems related to capital markets, Taskesenlioglu said:

‘’It is possible for the demand for capital market instruments to grow in a healthy and safe way, by forming a capital market culture in the society and by directing the savings of individuals and institutions more to the capital markets.’’

‘’We are experiencing very good developments for our capital markets.’’

Mehmet Hakan Atilla, the General Manager of Istanbul Stock Exchange stated that World Investor Week is celebrated each year in the first week of October, but this year the event dates have changed due to the epidemic. The events were held in Turkey on November 16-20, with the cooperation of CMB, TSPB and Istanbul Stock Exchange.

Stating that they experienced extraordinary developments this year, Atilla explained that they made many changes in daily life due to the epidemic and that the online organization of the panels during the ceremony and investor week was part of this. Noting that this year was also a period of very good developments for the capital markets, Atilla continued his words as follows:

‘’Our stock exchange has also improved itself in many areas. We have reached a daily transaction volume of ₺165 billion in repo reverse repo transactions. We reached very serious volumes in our precious metals market due to the increase in gold and silver prices due to economic uncertainty.’’

‘’We observed a serious inflow of foreign investors in the last week.’’    

Hakan Atilla, reminded that the index record was broken with 1291 points in the stock market due to the positive messages given to the economy, he gave the following information:

“At the same time, we have observed a serious inflow of foreign investors for the last week. I especially want to say that the transaction volume in the share market has increased by approximately 200 percent. While the daily transaction volume was ₺8 billion last year, this year we have exceeded ₺60 billion, and even reached the level of ₺64 billion. The total transaction volume in the futures market increased by 80 percent. We recorded a 44 percent increase in our debt market.’’

Atilla explained that the total number of accounts in the capital markets exceeded 50 million, the balance accounts exceeded 5 million, and the balance investor reached the level of 4.6 million. Stating that the number of balanced stock investors has reached 1.9 million, and that all their efforts are for these investors to be permanent. Atilla said:

‘’Our 6 companies, which need financing for their investments, went public this year, considering the appropriate conditions, and we contributed to the economy of approximately ₺400 million. This is not enough for us. Our country has a serious potential here.’’

‘’Do not rely on investment posts on social media.’’

Atilla advised investors not to forget that they are a shareholder of a joint stock company while investing in companies and made the following warnings:

‘’Let them examine companies’ balance sheets, Istanbul Stock Exchange practices, decisions, classifications, market structures carefully. If their risk appetite still continues, they should not forget that they are partners of this company.

There are some malicious individuals or institutions that sometimes abuse the good intentions of our citizens who want to invest their small savings. The Capital Markets Board and Istanbul Stock Exchange are doing their best in this regard. There are so many posts on social media channels now that we cannot control them all. That is why I ask investors not to rely on the posts and recommendations made on social media.’’

Atilla also underlined that investors should consider the warnings of Istanbul Stock Exchange and CMB regarding this issue.

source: AA / translated by Melisa Karaayusufoglu

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