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Is Turkey mulling a tax on stock and crypto investments? Bloomberg reported earlier on Tuesday that Turkey is close to imposing a transaction tax on trading in stocks and cryptocurrencies, citing official sources, who revealed that the Finance Minister discussed the plan last week. Treasury and Finance Minister Mehmet Simsek yesterday denied the news, saying only that the government is considering a “very limited” transaction tax.
The tax would come as part of a wider monetary tightening plan, aimed at shoring up Turkey’s fiscal position and boosting price stability, Reuters reports.
Turks are taking a liking to the market: This move could reel in substantial proceeds as more Turks are investing in the stock market, which saw equity accounts surge to 8.3 mn this year, a nearly seven-fold increase since early 2020, Bloomberg said, citing the Central Securities Depository of Turkey.
But the tax could reduce volatility, analysts say: “In the short term, this sounds like pain for the equity market, but in the long term, it means a huge gain, [as this tax may] reduce volatility, enhance the investment culture and reduce speculation,” Burak Cetinceker, a money manager at Strateji Portfoy in Istanbul told Bloomberg.
The Turkish market seesawed on the news, reversing losses yesterday after Borsa Istanbul fell to a near three-week low on Tuesday, closing at 1.8%.
MARKETS THIS MORNING-
Asian markets are mixed as investors digest fresh macro data from Japan and the European Central Bank’s first rate cut in five years, and await data on Chinese exports. The Nikkei slipped 0.19%, while the Kospi rose 0.7% and Hang Seng inched up 0.3%. Wall Street futures are little changed as the three major US indices continue to tick up to wrap a strong week.
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ADX |
8,937.7 |
-0.1% (YTD: -6.7%) |
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DFM |
3,978.8 |
0.0% (YTD: -0.2%) |
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Nasdaq Dubai UAE20 |
3335.9 |
-0.1% (YTD: -13.2%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
5.1% o/n |
5.2% 1 yr |
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TASI |
11,560.4 |
+0.1%% (YTD: -3.4%) |
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EGX30 |
26,428 |
-1% (YTD: +6.2%) |
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S&P 500 |
5,352.9 |
-0.0% (YTD: +12.2%) |
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FTSE 100 |
8,285.3 |
+0.5% (YTD: +7.1%) |
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Euro Stoxx 50 |
5,069.1 |
+-0.7% (YTD: +12.11%) |
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Brent crude |
USD 79.87 |
+1.9% |
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Natural gas (Nymex) |
USD 236.09 |
+0.1% |
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Gold |
USD 2,395.6 |
+0.2% |
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BTC |
USD 70,865.14 |
-0.6% (YTD: +67.4%) |
THE CLOSING BELL-
The DFM fell 0.04% yesterday on turnover of AED 423.7 mn. The index is down 0.2% YTD.
In the green: Drake & Scull International (+9.9%), Amanat Holdings (+2.9%), Taaleem (+2.4%).
In the red: Emirates Investment Bank (-9.1%), Orascom Construction (-5.5%) and Dubai Taxi Company (-2.7%).
Over on the ADX, the index fell 0.1% yesterday on turnover of AED 906.1 mn. Meanwhile Nasdaq Dubai fell 0.1%.
