Survey: What Do Market Professionals Think About the Stock Market and Bonds?

In November, 91 experts participating in the Market Professionals Survey (PPA) organized by Spinn Consultancy indicated a tendency to increase the weighting of stocks and Government Domestic Debt Securities (GDDS) in their portfolio preferences. The BIST 100 index's first dollar-based increase in four months seems to have encouraged market participants to boost their equity positions. According to the survey results, the proportion of those recommending an increase in the weight of stocks rose from 58.3% to 70.3% in November.

The reduction of uncertainties following the U.S. Presidential elections, alongside the emergence of new risks with Trump's election, as well as factors like geopolitical risks and Fed uncertainty, are causing investors to approach positioning in local markets cautiously. As new year expectations signal a positive trend for domestic stocks, the attractiveness of valuations and the possibility of monetary policy easing come into focus. Among participants responding to the bonus question, 58.2% believe that the BIST 100 could surpass its 2024 peak in 2025.

Increase in Debt Instruments and Other Instruments The survey indicates a significant change in debt instruments as well. Professionals who remained neutral on domestic short- and long-term debt securities in October were seen to recommend increasing the weight in November. The proportion of those advocating for a substantial increase in short-term debt securities rose from 0.9% to 3.3%, while for long-term debt instruments, it increased from 4.6% to 5.5%. This trend suggests that market professionals' interest in debt securities is rising.

The recommendation to remain neutral on the spot dollar/TRY reached its highest level in November, with 65.9% of respondents advising this stance. The neutral stance on TL deposits showed a significant increase in November, rising to 63.7% compared to previous months. Additionally, recommendations to reduce exposure to other asset classes such as foreign equities, DTH, gold, and eurobonds declined slightly. In the overall portfolio outlook, domestic equities hold the largest share at 35%, reflecting an increasing interest in domestic market instruments.