Reactions of foreign investors in BIST30 companies to news

This study investigates the reactions of foreign portfolio investors to macroeconomic news using the event study method. The purpose of this research is to assess the predictability and effectiveness of market reactions by revealing the impact of macroeconomic news on foreign portfolio investments. The findings provide guidance for policymakers, investors, and academics in their decision-making processes and contribute to a better understanding of market sentiment. Firstly, data on foreign investment rates, the Central Bank of the Republic of Turkey's policy interest rate, Federal Reserve System's policy interest rate, the Turkish CPI, and the US CPI for the three periods selected for the event study of 30 companies in the BIST30 index were collected from official sources and made suitable for analysis. Since time series analysis was being conducted, foreign investment rates were transformed into stationary series and abnormal returns were calculated using a 7-day moving average. Subsequently, the reactions of foreign portfolio investors to macroeconomic news shocks were statistically analyzed and interpreted using t-values and average abnormal returns. Statistically significant findings were obtained.