The stock market indices of Turkey and India continue to set new records. In Tuesday’s trading, the Turkish Bist 100 index jumped to 6070.78 points, surpassing the 6000 mark for the first time in history.
Indian stock indices Sensex and Nifty also reached new all-time highs. The BSE Sensex 30 broke 65,000 while the Nifty 50 climbed above 19,400.
The growth of the Turkish stock market was influenced by an increase in the exchange rate and positive data on the development of the country’s economy, writes Turkish edition of Milliyet.
Turkey’s manufacturing business activity data (PMI – a survey of purchasing managers) released on Wednesday was unchanged from the previous two months, amounting to 51.5 points. All values above the threshold of 50 points indicate growth in the sector.
The survey showed that the country’s manufacturing has been growing for the fourth month in a row, with the growth rate the fastest since July 2021. notes Reuters. In addition to improving demand, respondents attribute this growth to the sector’s continued recovery from the February earthquake and a revival in activity following the presidential election in May.
According to Milliyet, the fact that the stock market index and share prices remain undervalued on a currency basis is also pushing investors to buy.
Last month, the Central Bank of Turkey abandoned the policy of low rates. At a meeting on June 22, the Bank of Turkey raised its key rate to 15%. The regulator promised to continue to tighten monetary policy, noting, however, that steps to raise the rate would be gradual. The rate was raised for the first time in more than two years. The central bank also reversed some of the measures it had taken to support the lira and stopped using its foreign exchange reserves to support the currency, which has lost more than 80% of its value since 2018.
Support for Indian indices renders sustained interest in the Indian market from foreign investors. In the first six months of 2023, foreign institutional investors invested Rs 882.56 billion ($10.77 billion) in Indian equities. In comparison, in 2022, these investors sold more than Rs 1.2 trillion ($14.64 billion) in shares.
Later, Indian stock indices went into a sharp decline – investors began to take profits, writes Reuters agency. The Nifty 50 closed below 19,400 on July 4, while the BSE Sensex 30 remained above 65,000.
“There is no room for over-optimism in the market as valuations are not giving rise to a relentless rally,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
On the eve of Pakistan’s main stock index KSE-100 also demonstrated biggest one-day gain since 2008. Demand for Pakistani stocks has increased significantly after the country managed to negotiate a $3 billion loan from the International Monetary Fund (IMF). Market sentiment improved as IMF financing slightly reduces the risk of Pakistan defaulting on foreign obligations.
2023-07-04 12:09:21
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