PINAR SUNGUR
ISTANBUL - Referans


The Istanbul Stock Exchange or IMKB ranked among the worst performing stock markets for the first part of this year at least in part because of the flight of foreign investors from banking shares.
Foreigners who bought $5.6 billion of shares in 2006 and 2007 have sold $1.2 billion worth of shares since the start of 2008. Last year the portion of shares in Turkish equities held by foreigners amounted to 72.37 percent but since the beginning of January the figure has declined to 69.69 percent.
Foreign investors were especially eager to sell off their banking equities including those in Akbank Garanti Bank Vakıfbank and İşbank. The net sale of shares by foreigners in the first five months of the year was $256.1 million in Akbank $255.6 million in Garanti Bank $158.7 in Vakıfbank and $129.3 million in İşbank C shares. Total net sales in these four equities amounted to $800 million.
Equities suffered a hard hit due to heavy selling this year. Since the beginning of 2008 Akbank shares fell 38.2 percent Garanti shares 45.9 percent Vakıfbank 54.2 percent and İşbank C declined 32.3 percent.

Credit card debate:
One reason for the heavy selling trend is the prospect that the government will cap interest rates on credit card debt. Draft legislation currently awaiting discussion in Parliament has created worry amongst investors that bank profits will be hit.
After the so-called big four banks that were hardest hit the fifth equity that suffered particularly from heavy selling was Koç Holding with $108.6 million lost. Foreign investors also sold of shares in Acıbadem totalling $99.4 million Hürriyet Gazetecilik $54.4 million the Doğan Media Group $53.2 million and Halkbank reaching $45.1 million.
Noting that the banking sector represents 37 percent of the IMKB analysts say the expectation that the Central Bank will increase its benchmark interest rate might result in pressure to sell durable good automotive and construction equities.
The most popular share among foreign investors was Tüpraş Turaaa's biggest energy company which posted a 68 percent decline in first quarter profits. Foreigners bought $53 million dollar in Tüpraş shares in the first five months.
Despite a fall in profits the rise in global oil prices has made the company an attractive choice analysts say. The second most popular equity was Doğan Holding with foreigners purchasing $50.6 million dollars in Doğan shares. Meanwhile other top 10 choices for foreigners in the first five months of the year included two fertilizer companies. Foreign investors bought $36 million of Bagfaş shares and $16.5 million dollars of Gübre Fabrikaları shares.