| In
1993, Turkey's securities market was one of the strongest performing
markets. But, following a buoyant course of activity in 1993, 1994
was a year of slowdown in primary markets for securities in Turkey.
In a generally unfavorable economic environment which also impacted
the real side of the economy, borrowing through security issues in
particular experienced a decline throughout the year. This major
contraction was offset by a surge in the issue volume of equities in
the corporate sector. Primary market activity in government papers
continued their rising trend in the course of the year with a heavy
concentration in treasury bills.
Securities Issues Registered
With The Board
Between 1986-1995
| Years |
Shares |
Corp.Bonds |
Commercial
papers |
Asset
Backed
Securities |
MFPC
(TL Million) |
1986
1987 |
101,979
187,202 |
110,982
317,531 |
-
55,800 |
-
- |
-
45,000 |
1988
1989 |
364,478
971,543 |
210,860
604,514 |
271,000
465,350 |
-
- |
53,000
161,500 |
1990
1991 |
4,106,637
4,443,524 |
762,344
813,335 |
215,100
667,369 |
-
- |
855,000
65,000 |
1992
1993 |
5,322,828
9,573,375 |
796,900
715,234 |
1,006,631
1,205,450 |
14,480,585
52,756,391 |
92,000
5,355,000 |
1994
1995 |
37,553,000
51,335,076 |
491,090
1,883,100 |
156,500
1,533,000 |
42,299,369
113,928,450 |
2,203,000
4,249,000 |
Source: Capital Market Board
Private sector securities issues registered with the CMB showed an
18% increase over the previous year in TL terms.
In this total, shares issues had the largest portion with 44%, and
exhibited a 292% increase over the previous year.
In contrast to the increased activity
in the equities market, primary market activity in private sector
debt instruments declined dramatically in 1994 due to high interest
rates and uncertainties prevailing in the financial markets as a
whole.
Despite the negative outlook in the
first three quarters of 1994, the market recovered quickly in the
last quarter. Due to an overall more positive outlook, the inner
dynamics of the country and new measures and rules implemented in
order to restore confidence led to a very quick recovery in the
first half of 1995.
Total volume of securities issues
registered with the Board recorded a remarkable increase in 1995. A
significant portion of this total volume belongs to the asset-backed
securities issued by banks which is a 65%. Ranking second with 29%
out of the total, shares issues reached the level of TL 51, 335,076
million.
Corporate bonds issues showed an
increase of 283% over 1994's figures. Again, commercial papers
issues registered with the CMB, reached to the level of TL 1,533,000
million, showing 879% increase over the previous year.
As of October, 1995, total volume of
securities outstanding was recorded at TL 1,411,039 billion, of
which 80% belongs to the public sector securities. Although the
weight of the public sector securities declined from 81.9% in 1994,
to 80% in 1995, it still has the dominant share in the outstanding
securities.
Outstanding Securities
| Years |
Private
Sector Securities |
Public
Sector Securities |
Total
(TL Billion) |
| 1986 |
937.6 |
3,103.7 |
4,041.3 |
| 1987 |
2,113.2 |
5,360.4 |
7,473.6 |
| 1988 |
3,851.3 |
8,407.1 |
12,258.4 |
| 1989 |
8,026.5 |
15,485.0 |
23,511.5 |
| 1990 |
16,139.9 |
25,369.7 |
41,509.6 |
| 1991 |
34,566.4 |
44,718.7 |
79,285.1 |
| 1992 |
60,728.0 |
121,596.4 |
182,324.4 |
| 1993 |
112,070.7 |
270,087.5 |
382,158.2 |
| 1994 |
130,898.4 |
595,903.8 |
726,802.2 |
| 1995/10 |
275,044.4 |
1,135,994.5 |
1,411,038.9 |
Source: Capital Market Board
Resulting from both tax incentives
for mutuals funds with a minimum 25% of portfolio in equities (
type-A mutual funds ) and deregulation in 1992 allowing insurance
companies and non-bank intermediaries to set up mutual funds and
investment trusts, the composition of investors developed in favor
of collective investment schemes.
As of November, 1995, the number of
type-A mutual funds is 39 whose total portfolio value level is TL
4,907,929 million.
There are also 60 mutual funds of
other types which make the total number of mutual funds 99. Total
portfolio value of the other type mutual funds is TL 30,663,625
million by the end of November, 1995.
Portfolio composition of mutual funds
exhibits a dominance of public borrowing instruments. As of end
November, the percentage share of Treasury Bills in the total
portfolio of type-A mutual funds is 54.7%. Nevertheless, it marks a
decreased concentration in Treasury Bills in comparison to the end
of 1994, with 64.4%. Naturally, equities have the second major
portion in the portfolio composition of type-A mutual funds, with
44% as of November, 1995.
For the other type mutual funds,
concentration in Treasury Bills stands at more significant levels
with 86.3% in total, indicating a declining dominance of public
borrowing instruments in comparison to 90.1% in end 1994
The number of type-A investment
companies which operate in the Turkish capital market is 9 as of
November 1995.
The portfolio composition of these
investment companies exhibits the dominance of equities with 75.2%,
unlike mutual funds. The total portfolio value of type-A investment
companies is TL 1,519.1 million as of November, 1995.
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