Time to sell Turkish stocks after rally, VTB Capital says

Investors should sell Turkish equities after a recent rally, VTB Capital said in a report, according to Bne Intellinews.

Turkey’s main stock index has outperformed emerging market equivalents by 16 percent in dollar terms since June 19, VTB’s Akın Tüzün said in a report, according to the website.

“We believe it is not worth chasing this rally, and that in fact it is worth taking profits from a trading perspective,” Tüzün said.

Positive news including a lull in political tensions with the United States over Turkey’s purchase of Russian S-400 missiles, slowing inflation and a favourable backdrop for the economy is already priced into the market, Tüzün said.

“The current valuations of Turkish equities seem at best fair in the [cost of equity] context,” he said.