HSBC maintains its "increase weight" recommendation for Turkey, seeing opportunities amid volatility.

HSBC highlighted a significant fluctuation in Turkish stocks following Istanbul Mayor Ekrem İmamoğlu's detention on March 19, while identifying opportunities amid the volatility. The bank maintains its stance of "increasing weight" in Turkey, emphasizing a positive outlook on Turkish equities. Among the six stocks rated "Buy" are Turkish Airlines (IS:THYAO), Akbank (IS:AKBNK), BIM, Turkcell (IS:TCELL), Migros (IS:MGROS), and Torunlar GYO (IS:TRGYO).

Despite short-term challenges, HSBC believes that the fundamental long-term catalysts for Turkish stocks remain robust. The bank noted steps taken by policymakers to instill confidence among investors, with Finance Minister Mehmet Şimşek and Vice President Cevdet Yılmaz reiterating their commitment to policy continuity. HSBC also pointed out that the greatest immediate risk for Turkish bonds stems from ongoing pressures from currency outflows, emphasizing the importance of maintaining currency stability.