Domestic investors’ stock assets grow 120% in a year: TSPB data


Turkey Capital Market Association (TSPB), announced the summary financial market data for February. The TSPB data revealed that there has been a significant increase in the financial assets of residents (domestic investors) in the last year despite the decline in the last three months. The financial assets of domestic investors, which were TRY 3.8 tr in February 2020, increased by 35.3% and reached TRY 5.2 tr in February 2021, according to TSPB data. 

The 2021 February summary financial market data compiled by TSPB from Central Bank and the Central Registry Agency (CRA) resources reveal that the biggest increase in domestic investor’s financial assets was seen in capital markets. 

The fastest growth among residents’ financial assets in the last year was experienced in the stock market with the decrease in interest rates, record interest by residents due to effect of increasing digital opportunities and the rise in Borsa Istanbul. 

The investor number also increase  

The stock assets of domestic investors, which were TRY 188.7 bn at the end of February last year, increased by 120% and reached TRY 414.6 bn at the end of February 2021. TRY 118 bn of this amount belongs to corporate investors while TRY 232 bn to individual investors. The share of domestic investors’ stock assets in their total assets increased from 5% to 8% in one year with the rise. The number of investors in Borsa Istanbul stock market, which was 1.3 million at the end of February 2020, increased to 2.1 million at the end of February 2021. The number of investors active in the stock market, which was 593,000 in February 2020, exceeded 1.6 million in January this year, according to TSPB data. 

Share of capital market assets increased to 39% 

Asset-backed securities and asset-guaranteed securities of domestic investors, which were TRY 20.3 bn in February last year, increased by 65.4% to TRY 33.6 bn. 

TSPB data show that capital market assets consisting of stocks, asset-backed securities, asset-guaranteed securities, private sector debt instruments, government debt securities, warrants and certificates have increased faster than other financial assets. The share of capital market products of residents in total financial assets of residents, increased from 35.6% to 39.1%  percent as of February 2021.

FX deposit accounts caused the decline 

TSPB data also indicates that the decline that began in December 2020 in financial assets of domestic institutional and individual investors continued in February 2021. Financial assets of residents reaching TRY 5.3 tr in the end of November, lost TRY 97 bn value in three month and decline to TRY 5.2 tr in 2021 February. The decrease in foreign exchange deposit accounts, which has been depreciated with the effect of the rapid decline in foreign exchange since the end of November 2020, was effective in this decline. Foreign exchange deposit accounts, which were approximately TRY 1.8 tr as of the end of November last year, declined to TRY 1.6 tr by the end of February 2021, TSPB data showed. 

Limited increase in foreign investors’ assets

On the other hand, TSPB summary financial data for February 2021 reveal that financial assets of non-residents (foreign investors) grew lower than domestic investors. 

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