FEAS Yearbook FEAS Yearbook 2012 | Page 71

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2012 İSTANBUL MENKUL KIYMETLER BORSASI CAPITAL MARKET DEVELOPMENT AND ECONOMIC OUTLOOK The world economy is going through an unsteady recovery period in the post-crisis era. While growth in developed countries has been limited in this period, emerging economies are evidently less affected from the recession posting more favorable economic results. Turkey has managed to remain immune, to a certain extent, to the virulent symptoms of the financial crisis thanks to its strong macroeconomic policy framework and robust structural reforms of the recent decade. The reinforcement of sound fiscal policies seems to have broken the typical pattern of booms and busts, and it has been rewarded with a considerable decline in Turkey’s risk premium. In 2011, private consumption was strong and is expected to continue to be the stronghold of the economy. In addition, public sector consumption further adds to growth. Consumer credit expansion as well as increase in business lending confirm toward growth in consumption and investment. Furthermore, capacity utilization rates have been elevated and the economy is operating near potential. In 2011, the İMKB National-100 Index reached to 1,580.45 (US$ based). The stock market yearly total traded value is US$ 423.85 billion and the average daily traded value of equities amounted to US$ 1.7 billion in 2011. At the end of 2011, the market capitalization of 363 İMKB traded companies reached to a level of US$ 202 billion. As of end-2011, 12 ETFs (Exchange Traded Fund) are traded on the İMKB Collective Products Market. In the period of October 2011, compared to the same period of the previous year, number of unemployed persons decreased by 447 thousand persons. The unemployment rate in Turkey fell to 9.1% with a 2.1 point decrease on October 2011. Labor market developments, credit growth, capacity utilization, and consumer and business confidence point to continued strong growth in 2011. The country has experienced a quick rebound achieving a record 8.20% of growth rate in the third quarter of 2011, and has become the second fastest growing economy in the G-20 club. As per OECD forecasts, Turkey is expected to be the fastest-growing economy among OECD members during 2011-2017, with annual growth anticipated to average 6.7 percent. The turnover in fixed income securities transacted on the Outright Purchases and Sales Market is US$ 291 billion in 2011. The Repo/ Reverse Repo Market turnover is US$ 1.7 trillion in the same period. The average daily traded value in the overall Bonds and Bills Market increased to US$ 9.7 billion by 4.6% in 2011. The visible improvements in the Turkish economy have also boosted foreign trade, while exports reached to 11,114 million US$ with an 18.5% increase, exports reached to 18,647 million US$ with an increase of 8.8% in November 2011. Similarly, tourism revenues, which are an important source of foreign currency for Turkey, were US$ 23.02 billion in 2011, jumping from US$ 20.8 billion in 2010. In 2011, 27 companies offered their stocks for the first time to public and the number of new corporate bonds issued on İMKB hit 49. The amount of funds raised through 27 IPOs was US$ 832.4 million. * Information provided by İMKB ANNUAL AVERAGE REAL GDP GROWTH (%) FORECAST IN OECD COUNTRIES 2011-2017 7 6.7 6 5.0 4.9 4.7 4.5 5 4 4.1 3.9 3.8 3.6 3.5 3.2 3.4 3.4 3 3.0 3.0 2.9 2.8 2.8 2.6 2.6 2.5 2 2.3 2.2 2.1 2.0 1.9 1.8 1.8 1.6 1.4 1.2 1 Source: OECD Economic Outlook No: 86 Key Information Contacts Capital Markets Board of Turkey www.cmb.gov.tr İMKB Settlement and Custody Bank Inc. (Takasbank) www.takasbank.com.tr Central Registry Agency Inc. www.mkk.com.tr The Association of Capital Market Intermediary Institutions of Turkey www.tspakb.org.tr The Turkish Derivatives Exchange (TurkDEX) www.turkdex.org.tr PAGE 69