STRATEGY
EM EMEA is being sold 13.4% in 2016 with MSCI Russia and
South Africa down 14.9% and 16.5 respectively.
MSCI Turkey is down only 4.6% YTD.
·
Last week, MSCI Turkey (-0.3%) outperformed EM EMEA by 6.4%, Russia by
10.9% and South Africa by 6.6%;
·
Turkey is outperforming EM by 6.3% in the first
10 days of trading for 2016;
·
Turkey is outperforming India by 3.2% YTD and is
the second best-performing major EM this year after Indonesia (-2.5%)
Along with energy commodities’ collapse, we attribute
Turkey’s relative EM and EM EMEA outperformance in 2016 to expectations of
macro-prudential easing by the BRSA. (36.9% weight of BIST30 is
Banks.)