FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2011
ISTANBUL STOCK EXCHANGE
ECONOMIC AND POLITICAL DEVELOPMENTS
Prior to the recent global recession which hit
all economies throughout the world, the
Turkish economy sustained strong economic
growth for 27 quarters consecutively, making it
one of the fastest growing economies in
Europe. However, the global financial crisis
has considerably challenged the
macroeconomic and financial stability of many
economies by adversely affecting financing
facilities and external demand, thus causing a
significant slowdown in all global economic
activities.
While the financial markets in Turkey proved
resilient to the global financial crisis, the
decrease in external demand and slowing
international capital flows have had a negative
impact on the economy, thus causing a 4.7
percent economic contraction in 2009.
However, the perceived positive developments
in the economy showed signs of a fast
recovery beginning as early as the last quarter
of 2009, with an impressive 6 percent
economic growth rate, hence making Turkey
one of the fastest recovering economies in the
world. Its robust economic growth has
continued in 2010 as well, having reached
11.8 percent, 10.2 percent and 5.5 percent in
the first, second and third quarters of 2010,
respectively. Turkey’s very recent economic
performance has created an optimistic
environment, enabling international
organizations to regard it as the fastest
growing economy in Europe and among the
OECD countries.
A rise in general index was realized in the 2003
based Consumer Price Index on December of
the previous year by 6,40% and on the twelve
months moving averages basis by 8,57% in
December 2010.
In 2010, imports increased by 31.6%
compared to the value in 2009, from US$ 141
billion to US$ 186 billion, whereas exports
increased by 11.5% from US$ 102 billion to
US$ 114 billion. The difference between the
growth rates of import and export signals the
improvement in domestic demand. In addition,
the rate of imports covered by exports stood
at 61.4% as of December 2010.
As another sign of the recovery from the
global financial crisis, the non-seasonally
adjusted unemployment rate decreased from
13% in October 2009 to 11.2% in October
2010. Number of unemployed persons
decreased by 398 thousand compared to
October 2009, and has reached to 2 million
901 thousand persons in Turkey as of October
2010.
In 2010, the ISE National-100 Index increased
by 21% in US$ terms to 2499.75 and by 25%
in TL terms to 66,004.48. Besides, it recorded
its all-time-high value of 2,984.43 on
November 5, 2010. The stock market yearly
total traded value increased to US$ 425.7
billion by 35% in US$ terms in 2010 compared
to 2009. The average daily traded value of
equities stood at US$ 1.7 billion in 2010.
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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Exceeding its value before the financial crisis,
the market capitalization of 338 ISE traded
companies rose to a level of US$ 308 billion at
the end of 2010 from US$ 236 billion at the
end of 2009. As of end-2010, 12 ETFs
(Exchange Traded Fund) are traded on the ISE
Collective Products Market.
The net equity investments within the free float
of the ISE traded companies by foreign
portfolio investors has been registered at
around US$ 71.4 billion at the end of 2010
representing 66.18% of the free float.
The turnover in fixed income securities
transacted on the Outright Purchases and
Sales Market increased by 10.3% to US$
297.8 billion in 2010. The Repo/Reverse Repo
Market turnover increased by 4.2% to US$ 2
trillion in the same period. The average daily
traded value in the overall Bonds and Bills
Market stood at US$ 9.2 billion at the end of
2010.
In 2010, 22 companies offered their stocks for
the first time to public on the ISE. Also, two
Exchange Traded Funds (ETFs) started to be
traded on the ISE Collective Products Market,
one of the sub-markets of the Stock Market.
The amount of funds raised through 22 IPOs
was US$ 2.14 billion*.
Information obtained from the Exchange.