BlackRock ETF gives Turkish equities biggest boost in seven years

Turkish equities recorded their biggest inflows in seven years over the past week, according to data from EPFR, with most of the inflows attributable to a BlackRock exchange-traded fund (ETF). The net asset value of BlackRock's iShares MSCI Turkey UCITS ETF grew by more than two-thirds on June 12 to $241 million from $144 million, according to Reuters data.
"We usually see these types of changes at end-of-month portfolio rebalancing - or perhaps someone has got a strong view that it is expressing through this ETF," said a portfolio manager for a rival ETF provider, asking to remain unnamed as he is not authorised to speak publicly about rival companies. Turkish assets have been under pressure in recent weeks on concern that President Tayyip Erdogan, a self-declared enemy of interest rates, will tighten his grip on monetary policy after Turkey's June 24 election. Policy makers have struggled to rein in double-digit inflation.
Stocks fell to their lowest level in 14 months and the lira plumbed record lows against the dollar in late May, with both nearly 20 percent weaker since the start of the year. On June 7, Turkey ramped up its interest rates for the second time in around two weeks. BlackRock was not immediately available to comment.