FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT OCTOBER 2008
ISTANBUL STOCK EXCHANGE
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Huseyin Erkan
Chairman & CEO
The global economy seems to stand at a
difficult point, where demand slows sharply in
most developed economies and inflation rises
all over the world, but particularly in
developing countries. Global growth, which
continued robustly in the last four years, is
expected to retard notably in the second half
of 2008, before recovering, gradually in 2009.
In developed countries, business and
consumer sentiment have continued to retreat,
while industrial production has weakened
further. On the other hand, there have been
signs of weakening business activity in
emerging economies as well. Risks related to
global imbalances, such as the continuing
decline of the US Dollar and slower growth of
the US economy, and rising international oil
prices, still lead to worries.
It is worth noting that, in spite of the global
slowdown, rising energy and commodity
prices have boosted inflationary pressure
especially in the developing countries. Oil
prices have risen significantly, driven by supply
concerns, while food prices have increased
due to adverse weather conditions.
FUTURE OUTLOOK
• As part of its strategic plan in the mid-term,
the ISE is planning to increase the number of
public offerings through a number of activities
in 2008. A series of seminars, private meetings
are planned to be organized across the country
in cooperation with the local Chambers of
Commerce and/or Industry in order to increase
the awareness among the companies about
public offerings; the benefits and procedures.
As the second stage, consultancy units will be
Against this background, the top priority for
policymakers is to head off rising inflationary
pressure, while also holding risks to growth
under control. In many emerging economies
tighter monetary policy and greater fiscal
restraints are required, which, in some cases,
is combined with more flexible exchange rate
management. In major developed economies,
on the other hand, monetary tightening is less
imposing since inflation expectations and
labour costs are projected to remain well
anchored while growth weakens noticeably,
but inflation pressures still need to be
monitored cautiously.
Not surprisingly, financial market conditions
are not very favourable, and the Istanbul Stock
Exchange (ISE) has got its share. The ISE
National-100 Index, the main indicator of the
ISE, decreased by 40% in US$ terms in the
first half of 2008, compared to the values at
end-2007. The Stock Market total traded value
maintained its vivacity on the other hand,
amounting to US$ 144 billion for the first two
quarters of the year. The average daily traded
established at the Chambers of Commerce
and/or Industry of every city, which will inform
the companies on public offerings without any
charge. The training of the personnel of these
units will be given by the Istanbul Stock
Exchange.
• The ISE and the Istanbul Gold Exchange
signed a cooperation protocol
on July 17, 2008 in order to attract the precious
metal companies.
• The ISE, as the coordinator of the
Organization of Islamic Conference Member
value stood at US$ 1.1 billion during the same
period.
As of June-2008, 320 companies are traded
on the ISE. The market capitalisation of the ISE
declined by 33% compared to end-2007,
dropping to US$ 194 billion as of end-June
2008.
The share of foreign portfolio investors in the
free-floating shares of the ISE stood at 72% as
of end-2007 while this decreased only slightly
to 69.8% as of June-2008.
The average daily trading volume on the ISE
Bonds and Bills Market, on the other hand,
maintained its level of 2007. In the first half of
2008, the daily average trading volume of the
Outright Purchases and Sales Market
decreased by 12.5% to US$ 969 million, while
the average daily trading volume of the
Repo/Reverse Repo Market showed an
increase by 1.2% to reach US$ 8,049 as of
June 2008.
States’ Stock Exchanges Forum a platform to
reinforce the cooperation among the
participating stock exchanges, will host the
second Forum Meeting and the Working
Committee meetings on October 18-19, 2008 in
Istanbul.
• Work towards trading of warrants on the the
Istanbul Stock Exchange is being carried out in
coordination with the Capital Markets Board
(CMB) of Turkey. In this regard, CMB will
regulate warrant trading and the ISE will
determine the listing and trading principles.
CONTACT INFORMATION
Contact Name Mr. Eren Kiliclioglu
E-mail [email protected]
Website www.ise.org
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