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Friday, March 4, 2011

Finance Friday #2 : Turkish ETF's Headed Down ?

Kerem Uluengin explains that the Istanbul Stock Exchange National-100 index (XU100) has been declining of late,
basically due to rising global inflation expectations, and actions by the Central Bank of Turkey.  On top of that...

" Turkey imports 93% of its oil and political unrest from Libya is increasing the cost of energy and diminishing demand from a region that buys about 30% of Turkey’s exports. The country’s January trade gap was 7.4 billion dollars, in contrast to the expected amount of 4.5 billion. "

That being said, it's likely that " the ISE National-100 is most likely to continue its meager performance until the general elections which will be held on June 12 this year. "

What's an investor to do ? Check out Uluengin's article at Seeking Alpha.

MARCH 7 UPDATE : For a contrasting (and earlier) view, check out  Edward Hugh's SEEKING ALPHA post, 'Positive 2011 Outlook for Turkey'.