FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
ISTANBUL STOCK EXCHANGE
ECONOMIC AND POLITICAL DEVELOPMENTS
Economic and Political Environment
The recent subprime mortgage crisis and
financial crisis, increasing unemployement
increased the threats of a recession in the
world economy. The crisis in the world
economy has an impact on Turkish economy.
But Turkish economy has not been affected by
the global crisis severely due to Turkey has
improved its macroeconomic situation with a
determined fiscal discipline, prudent monetary
policy, political stability, social security reform,
large privatizations and structural reforms.
Turkey has implemented a range of economic,
political and social reforms in an effort to meet
EU requirements. The ongoing process of EU
accession and the signing of a new stand-by
agreement with the IMF covering the period of
2005-2008 have created two strong anchors
for increasing Turkey’s growth potential and
improving a better functioning market
economy.
Rehabilitating the business environment,
diminishing unrecorded economy,
strengthening financial system, promoting
communication and information technologies
are among the targets of the economy
management for the upcoming years in order
to lift Turkey onto a significantly higher growth
trajectory.
Economic Performance
Following the GNP growth rate of 4.6%
achieved in 2007, the Turkish economy grew
by 3% in the first three quarters of 2008. The
consumption expenditure of resident
households grew by 3.3% in the same period
of 2008. The investment expenditures of the
public sector grew by 1.2% and the private
sector investment expenditures grew by 0.8%
in the same period of 2008.
In the January-November period of 2008,
exports and imports reached US$ 124.3 billion
and US$ 190.5 billion, respectively, exports
registering an increase of 27.4% and imports
registering an increase of 23.8% compared to
the same period of 2007. Accordingly, the rate
of imports covered by exports stood at 65.2%
as of November 2008.
As of December 2008, the year-on-year
consumer price index increased by 10.06%
and the year-on-year producer price index
increased by 8.11% compared to the same
month of the previous year.
The consolidated budget registered a deficit of
YTL 4.9 billion as of October 2008 bringing the
primary surplus to YTL 38.5 billion. Total
revenues increased by 12.7% to YTL 175.8
billion and total expenditures increased by
7.4% to YTL 180.7 billion in the January-
October period 2008 compared to the same
period of 2007.
The gross privatization revenues in 2008 were
recorded as US$ 6.3 billion. The breakdown of
the privatization revenues is as follows; US$ 2
billion as block sale, US$ 1.9 billion as public
offering and US$ 2.3 billion as asset sale.
In 2008, the ISE National-100 Index, the main
index on the Istanbul Stock Exchange, showed
a decrease of 51.6% in YTL terms and 63.2%
in US$ terms as compared to the values at the
end of 2008. The stock market yearly total
traded value decreased to US$ 261.3 billion by
13.2% in US$ terms in 2008 compared to
2007. The average daily traded value of
equities stood at US$ 1.04 billion in 2008.
Key Information Contacts
Capital Markets Board of Turkey www.cmb.gov.tr
ISE Settlement and Custody Bank Inc.(Takasbank) www.takasbank.com.tr
Central Registry Agency Inc. www.mkk.com.tr
The Association of Capital Market Intermediary Institutions of Turkey www.tspakb.org.tr
The Turkish Derivatives Exchange (TurkDEX) www.turkdex.org.tr
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The market capitalization of 317 ISE traded
companies decreased to a level of US$ 119.7
billion at the end of 2008 from US$ 290 billion
at the end of 2007. Nine ETFs (Exchange
Traded Fund) are traded on the ISE ETFs
Market in 2008.
The net equity investments within the free float
of the ISE traded companies by foreign
portfolio investors has been registered at
around US$ 27.5 billion at the end of 2008
representing 67.5% of the total value stocks in
custody.
The turnover in public debt securities
transacted on the Outright Purchases and
Sales Market decreased by 14.2% to US$
239.4 billion in 2008 compared to 2007. The
Repo/Reverse Repo Market turnover increased
by 14.1% to US$ 2,274 billion in the same
period. The average daily traded value in
Outright Purchases and Sales Market and the
Repo/Reverse Repo Market, stood at US$ 10
billion at the end of 2008.
In 2008, two companies and one Exchange
Traded Fund (ETFs) offered their stocks for the
first time to public and started to be traded on
the ISE Stock Market. The amount of funds
raised by the IPOs of two companies was US$
1.9 billion.
All brokerage houses (104 brokerage houses)
have been provided with remote access to the
stock market trading system. In 2008, the
number of orders sent by members via Ex-API
(Express Application Programming Interface)
terminals reached 92% of all orders. Trading
on the Bonds and Bills Market is already
carried out remotely. *
* Information provided by the Istanbul Stock Exchange