“I don’t think you actually need a coalition government for Turkey to outperform if the market was already pricing a fairly bad outcome,” Andres Garcia-Amaya, an emerging-markets macro research analyst at JPMorgan Investment Management, said in the Bloomberg article. “If a coalition were to occur, Turkey will outperform further.”
Michel Danechi of Duet Asset Management Ltd. even contends that Turkish political parties could unite under the common cause of pushing back IS extremists.
“It increases the chance for a coalition, so is actually positive,” Danechi said in the Bloomberg article.
Moreover, as a net importer of oil, Turkey would benefit from the cheap fuel prices, which would eventually translate to stronger markets, according to Pinar Uslu, a strategist at ING Bank.
iShares MSCI Turkey ETF
For more information on Turkey, visit our Turkey category.
Max Chen contributed to this article.