BlackRock ETF gives Turkish equities biggest boost in 7 years
Published Jun 15, 2018 10:14AM ET
BlackRock ETF gives Turkish equities biggest boost in 7 years
By Abhinav Ramnarayan and Alasdair Pal
LONDON (Reuters) - Turkish equities recorded their biggest inflows in seven years over the past week, according to data from EPFR, with most of the inflows attributable to a BlackRock exchange-traded fund (ETF).
The net asset value of BlackRock's iShares MSCI Turkey UCITS ETF (L:ITKY) grew by more than two-thirds on June 12 to $241 million from $144 million, according to Reuters data.
(For a graphic on iShares Turkey ETF inflows click https://reut.rs/2JDkgad)
"We usually see these types of changes at end-of-month portfolio rebalancing - or perhaps someone has got a strong view that it is expressing through this ETF," said a portfolio manager for a rival ETF provider, asking to remain unnamed as he is not authorized to speak publicly about rival companies.
Turkish assets have been under pressure in recent weeks on concern that President Tayyip Erdogan, a self-declared enemy of interest rates, will tighten his grip on monetary policy after Turkey's June 24 election. Policy makers have struggled to rein in double-digit inflation.
Stocks (XU100) fell to their lowest level in 14 months and the lira plumbed record lows against the dollar <TRY=> in late May, with both nearly 20 percent weaker since the start of the year.
On June 7, Turkey ramped up its interest rates for the second time in around two weeks.
BlackRock was not immediately available to comment.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.