Moscow. March 11. The mysterious investor in the stock market of Turkey is confusing the minds of the traders of large one-time infusions. It was first sighted on the market a year and a half ago, when one day he opened the position at $450 million, almost twice its average level, reports Bloomberg.
According to bankers and traders in Turkey, now “Ghost trader” makes big bets with increasing frequency, scaring off other participants who are not able to predict when he or she next time will hit the market. In Istanbul a mysterious investor called “harif”, i.e. “man”.
Turgay Ozaner and its partners of the Istanbul Portfolio for a few months looking at daily official reports about the results of the auction in search of a hint of the identity of anonymous investors, but to solve the mystery fails.
Whoever this unsub is, he flees from one broker to the next, honing its technology. Last used by brokerage companies, Yatirim Finansman, “dude” turned in the largest net purchaser in the market. Just a couple of years ago Yatirim Finansman was entered into less than 2% of transactions on the market, now in some days it accounts for more than half of the daily turnover.
“Anyone no one knows, says Osenar. And because this is Turkey, where usually there are no secrets for long.”
According to informed sources, the customers at least one European Bank has stopped to open a short position in Turkish stock, when they came to the conclusion that anonymous trader makes a bet with the help of algorithmic systems using complex formulas, while other traders simply avoid the market to more information.
This year, a mysterious investor has increased the daily trading volume of the Istanbul stock exchange by almost 8% compared with a 15% recession in the main trading platform of Warsaw and 27% collapse in Moscow, according to Bloomberg data. During this time, the Borsa Istanbul 100 has grown on 13%, ahead of the Russian MICEX index and the Polish WIG20.
Yatirim Finansman 22 February placed orders to buy shares on the 486 million Turkish liras ($167 million), taking about 15 times more positions than Merrill Lynch, the second largest dealer in the day. In the course of 16 sessions on 8 March Yatirim Finansman registered buy orders of the shares of the six largest banks in Turkey and Turkish Airlines a total of almost 1 billion liras. As a result, the index of Borsa repeatedly updated three-month highs.
In total for January and February Yatirim Finansman a net bought shares at 1.23 billion lire, nearly 70% of the second largest buyer – UBS Menkul Degerler AS. All this gives Ozanaru from Istanbul Portfolio reason to believe that anonymous investor is currently “making the market”.
“Had more money than anyone else, and he can move the market in either direction,” says the Fund Manager Ak Portfoy Kerem Baykal, managing assets of $610 million.
The Istanbul stock exchange declined to comment. Not to answer questions Yatirim Finansman and two other broker, Gedik Yatirim and Meksa Yatirim, through which, according to traders and bankers, was also unknown to the investor.
All three broker have one thing in common: they provide the conditions for high-frequency trading, where trading ideas implement algorithms, not traders.
At the end of last year, the Istanbul stock exchange moved the servers to a new data center based on the involvement of algorithmic traders on the eve of long-planned IPO. High-frequency companies often place their servers in the same datacenter to get the fastest access to the exchange’s computers.
Investment strategist at TEB Invest/BNP Paribas Ishik OCTA convinced that the unknown investor is well done. “This algorithmic trader has opened a new market and is now reaping the fruits alone, because competitors he is lacking, but they will come, says OCTA. – We are still in the beginning, but the history of developed markets shows, that the machines always come out victorious.”