Top 3 Best Turkish Stocks to Buy

While Turkish stocks usually didn’t draw much attention, that’s starting to change.

Investors and traders, alike, have been keeping their eyes on the Turkish stock market as a potential investment option.

If you plan on adding Turkish stocks to your portfolio, Admirals can outline some potential options.

We’ve prepared this article with the best Turkish stocks to watch, advantages and disadvantages, how to invest in or trade the best Turkish stocks to watch and more. 

Sounds interesting? Let’s get started. 

Best Turkish Stocks: An Introduction 

For recent decades, most investors didn’t consider the Turkish stock market a viable investment option.

However, that has changed recently and Turkish stocks have seen a sudden influx of foreign investments. Following this growth in popularity, Turkish stocks continue to draw plenty of interest from potential investors. 

After a few years of financial problems, Turkey’s economic policy took a 180-degree turn. That was primarily because of the Lira’s devaluation.

Turkey’s national currency has seen a steep drop, which in turn has made Turkish stocks far more attractive for foreign investors. 

It’s essential to have some understanding of the Turkish economy and its proprietary currency (the Turkish Lira) in order to form an educated opinion on which are the best Turkish stocks to watch. 

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Understanding More About the Turkish Economy 

Turkey has an emerging economy. The country is one of OECD’s and G20’s founding members. Currently, Turkey is listed as the 19th-largest economy in the world, with a sizable GDP of $906 billion. 

Over the past decade, Turkey found itself on opposite ends.

Internally, the country saw high growth rates, fuelled by an aggressive economic policy.

However, Turkey's growth was primarily tied to the construction sector. Once the construction boom cooled off, the Turkish economy suddenly found itself buried in a deep crisis. 

Despite the high inflation rates, policymakers refused to increase interest rates. That started to change in 2023, following a radical shift in the country’s economic policy.

Some of the important changes include a spike in interest rates, easing regulations on banks and currency devaluation.

Best Turkish Stocks to Watch: Advantages and Disadvantages 

It appears to be a trend in 2023 that both investors and traders now look at the best Turkish stocks to watch as a viable option to diversify their portfolio.

 The competitively lower prices and high recent returns make Turkish stocks an interesting alternative to consider. 

Of course, there are questions over whether this sudden boom in Turkish stocks could be sustainable in the long run; as with any financial investment or asset, there are always advantages and disadvantages, which we will cover, below:

Advantages of the Turkish Stocks 

Turkish stocks are relatively inexpensive in comparison to other investments. With Turkey adopting currency devaluation as part of its economic policy, Turkish stocks do not require significant capital. 

The Turkish stock market has a wide variety of companies to choose from, allowing investors to create a highly diversified portfolio. 

Turkey has recently adopted a new economic policy that has made it easier for foreign investors. The country’s stock market has seen a significant influx of foreign capital in recent years. Turkey’s new economic policy is hence closely aligned with the rest of the world. 

Disadvantages of the Turkish Stocks 

Turkey is just coming off an economic crisis, which was a result of the government's previous economic policy. The country is still in the middle of this recovery process, not to mention that regional and national geopolitical problems can always have a negative effect on the country’s economy. 

Given Turkey’s recent economic woes, there is still some uncertainty surrounding the country’s recovery process, and if the current improvement is going to be sustainable. 

While the government’s shift in its economic policy was welcomed by foreign investors, it wasn’t enough to completely quell doubts over a potential return to the previous one. 

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Top 3 Best Turkish Stocks to Watch 

If you are interested in investing in or trading the Turkish stock market, the next step should be searching for the best-performing Turkish stocks available.

We have listed the best Turkish stocks to watch, including their advantages and disadvantages. 

1. Turkcell Iletisim Hizmetleri AS ADR (TKC) 

Turkcell Iletisim Hizmetleri AS (TKC) is the biggest name in Turkey’s telecom market. TKC also provides its services in other countries, including the Netherlands.

The company offers a wide range of digital services, from mobile communications to cybersecurity, digital services and applications.

Advantages: 

• TKC has been trending upward over the past 12 months. 
• Turkcell has also reported an increase in total revenue and gross profit over the past 12 months. 
• The company also saw an increase in the number of users during that period.

Disadvantages: 

• Despite trending up, Turkcell’s stocks are still slightly volatile. 
• Reported a decrease in net income during the first quarter of 2023. 
• Was involved in controversy during the Turkish general election following the decision to shut down offices over the election weekend, leading to a fall in TKC’s stock. 

You can trade TKC CFDs at Admirals or invest directly in TKC shares.

2. SASA Polyester (SASA) 

As its name suggests, SASA Polyester (SASA) produces polyester and other polymers. The company is located in Adana, with two major production sites. 

Advantages: 

• Strong technical indicators over the past 12 months. 
• Remains the largest Turkish polyester producer. 
• The company has moved forward with vertical integration of the company’s production.

Disadvantages: 

• Negative net income in Q2 2023. 
• Faces strong competition in the Turkish market from Asian imports. 
• SASA Stocks have been extremely volatile.

3. KOC Holdings (KCHOLD) 

KOC Holdings is Turkey’s largest industrial conglomerate, operating in energy (including renewable sources), consumer durables, as well as in automotive and financial segments.

Advantages:

• Has posted better numbers than Turkey’s indexes. 
• Benefited greatly from the lira’s devaluation. 
• The stock has been on the uptrend since the end of 2022. 

Disadvantages: 

• Took a big hit in the energy segment. 
• Still subject to uncertainty over the future of Turkey’s economy. 
• Stock took a plunge in late 2022.

How to Buy Turkish Stocks 

There are multiple options to buy Turkish stocks. While you can invest directly in the best Turkish stocks to watch, you also have CFDs as an alternative. CFDs, short for Contract for Difference, allow you to invest in something without necessarily owning the asset.

As the name suggests, you will be bound by a contract with your broker of choice. As the buyer, you will be paid the difference between the asset’s current price and its price at the start of the contract. 

You can register at Admirals to buy Turkish stocks or Turkish stocks CFDs. Both are done via MetaTrader 5 (either Invest.MT5 or Trade.MT5) - an easy-to-use tool with multiple features, such as: 

• Charts. 
• Free market data and news. 
• Educational tools. 
• Access to thousands of markets. 

MetaTrader 5 lets you trade for CFDs with Trade.MT5, and to invest with Invest.MT5.

Have you tried using the free MetaTrader 5 tool to analyse various stock movements, apply indicators or improve your strategy? Gain access to the MT5 platform today with Admirals – Click the banner below to get started: 
 

Best Turkish Stocks: Conclusion 

For a long time, Turkish stocks weren’t really a viable option. The country’s unstable and unorthodox economic policy gave margin to plenty of doubts.

However following the 2023 general elections, the Turkish government adopted a dramatically different outlook regarding its economic policy, making the country far more attractive for foreign investors. 

Right now, because of their relatively affordable price, the best Turkish stocks have become a viable option for investors looking to diversify their portfolio.

However, keep in mind that Turkey is still a relatively volatile country, and there are lingering questions over the long-term viability of its current economic policy. 

As with all trading and investing activity, please always keep in mind to establish and follow your risk management profile and tolerance. 

If you’re ready to register a free live account with Admirals and start your trading journey, click the banner below to register now: 

Other Articles of Interest:

• Top 5 Best Wheat Stocks to Watch
• How to Trade the Turkish Lira
• Top 5 Best Climate Tech Stocks to Watch

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