Turkish stocks have outpaced every equity market in the world this year in local currency terms as domestic investors clamor for assets that can shield against soaring inflation.
Other money managers such as Strateji Portfoy’s Cetinceker and Marmara Capital’s Haydar Acun say the rally may have further to run because Turkish stocks still trade with appealing price-to-earnings valuations.
The Borsa Istanbul 100 Index trades at 4.5 times estimated earnings over next year, suggesting a near-record discount of more than 60% to the MSCI Emerging Markets Index.