Is it time to buy back Turkey yet? Credit Suisse answers
According to Credit Suisse’s research analysts Alexander Redman and Arun Sai the time is getting close, but they recommend staying underweight in Turkish equities.
Credit Suisse’s analysts found a series of evidences in support of a potential upgrade to Turkish equities.
One of them shows that the magnitude and duration of underperformance is close to being consistent with previous episodes.
According to the research, moreover, the lira is the most depressed versus its Real Effective Exchange Rate (REER) trend in a decade.
Looking at the banks, the research also shows how Turkish banks appear to already be discounting higher interest rates.
Moderation in short-term loan growth and the central bank lending survey suggests negative momentum in the non-oil current account deficit will be contained, the analysts also reported.
Click here to read full research: [asset_library_tag 6992,Credit Suisse EEMEA Equity Strategy]