| Under
Turkish legislation, the Istanbul Stock Exchange (ISE) is
responsible for developing and maintaining the central securities
market of Turkey for the benefit of the national economy in general
and the Turkish capital market in particular.
During 1990, the ISE signed a unique
insurance scheme with the country's largest bank to cover all risks
associated with the market.
In June, 1991, a new secondary Bonds
and Bills Market based on a screen-trading system was inaugurated.
This department deals in Government bonds, Treasury bills, corporate
bonds, commercial paper and revenue sharing certificates.
In 1992, settlement and depository
services, which were provided by ISE, were transferred to a new
company (Settlement and Custody Co., Inc.,) incorporated with the
participation of the ISE and its members.
Main Indicators On ISE Equity
Market
| Years |
No
of working days |
Average
daily trading volume
( $ Million) |
Average
Daily Equities traded
($ Million) |
Index
($)
(Jan.1986=100) |
| 1986 |
247 |
0.05 |
0.01 |
131.5 |
| 1987 |
266 |
0.47 |
0.06 |
384.6 |
| 1988 |
253 |
0.45 |
0.12 |
119.8 |
| 1989 |
255 |
3.03 |
0.9 |
560.6 |
| 1990 |
247 |
23.70 |
6.2 |
642.6 |
| 1991 |
247 |
34.42 |
18.3 |
501.5 |
| 1992 |
251 |
34.13 |
40.9 |
272.6 |
| 1993 |
246 |
88.50 |
143.3 |
833.3 |
| 1994 |
253 |
91.71 |
395.5 |
413.3 |
| 1995/11 |
230 |
214.30 |
1,217.6 |
420.8 |
Source: Capital Market Board
Main Indicators Regarding
Corporation Quoted At The ISE Equity Market
| Years |
No of
Quoted Co.s |
Turnover
Ratio(%) |
P/E
Ratio(%) |
For
Equities Traded Market Capitalization
($ Million) |
1986
1987 |
348
414 |
1.2
3.3 |
5.1
15.9 |
938
3,125 |
1988
1989 |
556
730 |
7.3
11.2 |
5.0
15.7 |
1,128
6,756 |
1990
1991 |
916
1,092 |
27.7
44.9 |
23.9
15.9 |
18,737
15,564 |
1992
1993 |
1,238
1,284 |
66.5
46.8 |
11.4
25.8 |
9,922
37,824 |
1994
1995/11 |
1,204
976 |
77.8
180.2 |
24.8
8.9 |
21,785
22,597 |
Source: Capital Market Board
Secondary market trading in equities
in July 1994 began to be carried out in separate 2-hour sessions,
one being in the morning and one in the afternoon. For the
convenience of foreign investors, facing difficulties due to
differences in time zones, the settlement period was extended to two
days.
The computerization process which
began in 1993 was fully completed in 1994 and replaced the manual
trading system in the Istanbul Stock Exchange.
In 1994, in order to create a
reliable environment for trading of stocks of medium-to small-sized
companies, "Regional Markets" were established in the ISE
which comprise companies temporarily delisted, not fulfilling the
listing requirements of the Stock Exchange, or lacking the
qualifications for trading on the ISE's National Market.
ISE Settlement and Custody Inc. has
applied for a change of status to an Investment Bank, under trade
name "Takasbank and the application was approved by the Council
of Ministers in 1995.
Takasbank, which is in the process of
restructuring and reorganization, currently meets most of the
"Recommendations of the Group of 30". Takasbank, as a part
of its policy of contributing to the transparency of the securities
markets, has been providing custody services on a customer basis
since February, 1995.
Studies on regulation and enforcement
of dematerialization of capital market instruments have been carried
out.
In 1995, short-selling operations
were commenced in the ISE's Stock Market. All of the stocks subject
to short-selling are constituents of the ISE Composite Index. The
Bonds, Bills and Repo Markets have been re-defined and updated.
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