2022 ended the year with most indexes benchmarked to companies, sectors, countries, asset classes in the red. But amongst all the red, one index shown above the rest - MVIS® Turkey Index (MVTURTR) outperformed every other country index with an extraordinary +102% USD return. Extraordinary considering headline inflation reached almost triple digits, a contrarian monetary policy of lowering interest rates, foreign capital outflows, and currency depreciation.
The MVIS® Turkey Index (MVTURTR) tracks the performance of the largest and most liquid companies incorporated in Turkey. This index also includes non-local companies incorporated outside Turkey that generate at least 50% of their revenues in Turkey. MVTURTR covers at least 90% of the investable universe. Investors monitoring this pureplay index, can observe that Turkish stocks continue to rise as domestic investors plow money into the stocks to protect their savings from rampant inflation.
MVIS® Turkey Index
31/12/2021-31/12/2022
Source: MarketVector IndexesTM, as of December 31, 2022.
Is this rally sustainable? Investors should be aware of the risk posed by the upcoming elections, Turkey’s role in the Russia-Ukraine war, inflations downside pressure on earnings, further currency weakness – the macro economic outlook does not look like it is on the same trajectory as markets.
For more information on Turkish stock market, watch, Steven Schoenfeld’s Reuters TV segment "Turkish exports across the region, across the world, have continued to grow."
For more information on our family of indexes, visit: www.marketvector.com.
About the Author:
Joy Yang is Global Head of Index Product Management at MarketVector IndexesTM. She is responsible for managing MarketVector IndexesTM products and services to accelerate innovation in financial index design and adoption. Joy brings more than 25 years of investment experience to MarketVector IndexesTM, having led teams delivering index and quantitative-active investment solutions at Arabesque Asset Management, Dimensional Fund Advisors, Vanguard, Aberdeen Standard Investments, AXA Rosenberg, and Blackrock. Joy has an MBA from the University of Chicago Booth School of Business, and a BS in Electrical Engineering from Cooper Union’s Albert Nerken School of Engineering.
For informational and advertising purposes only. The views and opinions expressed are those of the authors but not necessarily those of MarketVector Indexes GmbH. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. MarketVector Indexes GmbH does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. Inclusion of a security within an index is not a recommendation by MarketVector Indexes GmbH to buy, sell, or hold such security, nor is it considered to be investment advice.