Turkish stocks are set to deliver their strongest January in 29 years, as a surge of optimism around emerging markets and cheap valuations pulls foreign investors back into the market. Analysts point to a 12% rise in the benchmark index, signaling renewed confidence in Turkey’s economy for both domestic and international portfolios today.

The rally lifts Turkey’s market cap to roughly $200 billion, matching levels seen in 2015. Yet currency volatility and rising global rates pose risks. Investors eye the central bank’s policy stance, as a tighter stance could temper growth. Still, the current environment offers a compelling entry point for long‑term holders today.

Watch for next month’s inflation data and the central bank’s policy meeting. A surprise rate hike could dampen momentum, while a dovish shift might accelerate gains. Analysts also track corporate earnings, especially in the banking and energy sectors, which could validate the bullish sentiment and sustain the rally for investors.