Turkish assets were sold in the financial market on the 15th. The Turkish presidential election, which was scheduled to be held on the 14th, is expected to hold a run-off on the 28th as no candidate won a majority of the votes. It came as a surprise to investors who were hoping for the end of nearly two decades of Erdogan’s rule and unconventional economic policies.
The BIST 100, a major stock index, fell 6.7% at one point, triggering a circuit breaker. After that, the range of decline was narrowed. Turkish dollar-denominated bonds suffered one of the biggest losses among emerging market bonds.
Five-year credit default swaps (CDSs), which guard against default on Turkish bonds, have spread to 575 basis points (bp, 0.01%), the highest since April 21.
The lira fell 0.4% against the dollar. Several state-owned banks have stepped in to try to stem the lira’s decline, according to people familiar with the matter.
Turkey’s presidential election: run-off inevitable, political uncertainty weighs on markets
Turkish bonds and stocks have been buying in recent days on hopes of ending Erdogan’s policies that have led to the highest inflation in decades and an outflow of foreign capital from the country.
Erdogan faces a runoff against the main opposition coalition candidate Kemal Kultidaruolu.
Erdogan won 49.4% of the vote, just short of 50%, but he has the momentum to win thanks to his better-than-expected performance and control of the parliamentary majority, said Telimar strategist Hasnain Malik. in Dubai) said.
Overseas investors have been selling Turkish lira assets for six years Source: Central Bank of the Turkish Republic Foreign Ownership in Lira Assets Tumbles
Original title:Turkey’s Markets Drop as Bets for Erdogan Exit Unravel、Turkey 5-Yr CDS Jump to Trade at Highest Since April 21、Turkey Poised for Election Runoff As Erdogan Votes Fall Short(excerpt)
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2023-05-15 10:16:55
