Wherever you look these days, we see unusual price movements. The weather can change in an instant. It is almost as if the air of spring, abundance and abundance is blowing. Afterwards, the environment turns into a desert on one side. In an environment where the shares of the banking sector fell below their book values and the sales of foreigners were on the bottom, they suddenly started to move.
In one month, the banks gained 70% on the basis of inflation, and 10 banks are traded in the stock market. Total market value of $29 billion 500 million. The average free float ratio of banks is 25.57%. I listen to the commentators; they are in an attitude as if they are competing to beautify their bank shares.
TWO QUESTIONS TWO ANSWERS
Which of the bank shares received the most demand?
4 bank shares traded on the stock exchange gained more than 120% in the last 1 month. Vakıflar Bankası climbed by 151%, Şekerbank by 131%, TSKB by 122% and T. Halk Bankası by 120%. Akbank, Garanti Bank and İşbank increased by 60%. Shares were in demand because banks traded below their book value.
Why is the rise in public banks more?
The fact that their prices are excessively discounted is the most important factor in their demand… However, the sharp price movements experienced in public banks remind of the inflation rally during the election process.
FALL INTEREST HAS BEEN BENEFITED TO THE BANKS
The fact that the interest rate is in a downward trend has benefited the banks the most. After the policy rate fell from 14 percent to 13 percent, the highest demand came to bank shares. Because banks are the institutions that are most positively affected by the current situation.
With the decrease in interest rates, banks have the opportunity to extend more loans while collecting resources more cheaply. In this process, public papers held by banks are also valued. However, as far as I can see, the reason for the rise of banks is not only the cheap stocks and the increase in the profitability of the banks. Public banks on the rise; “in the electoral process. exchange it will be alive” is engraved in the minds.