International Equity (Stock) Markets

Internatioanl equity is an investment type that enables investors to buy and sell shares of companies traded on international markets. This service provides access to shares of leading firms International equity different countries. Thus, without being limited to local markets, it becomes possible to benefit from the potential returns of companies operating on a global scale.

Internatioanl equity generally offer the opportunity to invest in businesses that are globally recognized and leader in their sectors. As Yapı Kredi Invest, we aim to facilitate investors’ ability to trade in global markets with reliability and institutional support.

What Is International Equity?

International equity is the process of creating an international investment portfolio by purchasing shares of companies traded on global exchanges. In this investment type, investors can access not only Turkish firms but also large and small companies in various regions of the world. Thus, portfolio diversification increases and dependence on a single region or sector decreases.

Thanks to global exchange opportunities, one can invest in companies operating in sectors such as technology, energy, and healthcare. This strategy offers the chance to evaluate foreign stocks with high growth potential, while also allowing investors to benefit from international economic developments.

How Are Stocks Purchased on International Equity Markets?

You can open your International equity account via Yapı Kredi Mobile without needing to visit a branch. To open an International equity account, you must have an active domestic stock account and a risk profile of Dynamic or Aggressive. There is no minimum threshold or investment advisor requirement for opening or transacting in an International equity account. To place a buy order on International equity, you need to deposit into your chosen USD demand deposit account an amount equal to the price of the stock to be purchased plus the buy commission plus the sell commission, and then transfer this amount to your International equity account. After logging into Yapı Kredi Mobile, follow Investments > International equity > Deposit / Withdraw steps.

After logging into Investment World, you can place buy or sell orders by selecting International equity under the Buy/Sell menu and following Investments > International equity steps on Yapı Kredi Mobile

What Are the Advantages and Risks of Internationa Equity Investment?

International Equity Trading Hours and Markets

When trading stocks on overseas markets, it is important to know each exchange’s specific trading hours. For example, Nasdaq and NYSE typically open in the evening and continue until midnight Turkish time. The London Stock Exchange starts just a few hours behind Turkish time and remains active until the late afternoon. As one of the largest players in Asian markets, the Tokyo Stock Exchange opens in the early hours of the Turkish morning and remains open until the morning.

Knowing these market hour differences helps you build your trading strategy in the correct time zone, make quick decisions, and closely follow global trends.

Commission and Fees in International Equity Transactions

Investment costs in international equity transactions may include various items such as transaction fees and commission rates. Click here for information on transaction commissions and fees.

How Are International Equity Taxed?

For stocks traded abroad, investors may face various tax liabilities. Bilateral tax treaties between countries can be effective in alleviating certain obligations and reducing the risk of double taxation. Click here for detailed information.

What Are International Equity Market Indexes and How Do They Work?

Global indexes are market indicators that measure the performance of a specific number of large companies traded on international markets. For example, the S&P 500 and Dow Jones indexes cover leading U.S. companies and provide key insights into overall market health. In Europe, the FTSE 100 (UK) and DAX (Germany) similarly represent their respective national exchanges.

These indexes serve as reference points for investors conducting investment analysis. Fluctuations in indexes offer insights into the general course of economic developments and company performances. Thus, investors planning international equity investments can better assess the risks and opportunities in those markets.

Differences Between International Equity and the Turkish Stock Exchange

Which Analysis Methods Should Be Used for International Equity Investment?

To increase the success of your international equity investments, it is recommended to use fundamental analysis and technical analysis approaches together. These methods provide valuable information for understanding the intrinsic value of stocks and interpreting price movements. The most commonly used analysis methods and their key points are:

• Fundamental Analysis: Detailed evaluation of companies’ balance sheets, income statements, cash flows, and sector developments.
• Technical Analysis: Evaluation through trend identification, chart reading, and indicators based on past price movements.
• Combined Analysis: A more holistic investment decision-making process by combining the advantages of both approaches.

How to Perform Technical Analysis for International Equity

Technical analysis focuses on price analysis and trading volume to identify potential future trends. Investors can use chart-reading skills to observe peaks and troughs during trend identification. Support and resistance levels mark important price points and indicate potential breakouts or reversals. Indicators such as moving averages or RSI (Relative Strength Index) also provide information about the stock’s momentum.

How to Perform Fundamental Analysis for International Equity

Fundamental analysis involves examining financial data such as balance sheets, income statements, and cash flows in company valuation processes. It also evaluates the current dynamics and future growth potential of the sector in which the company operates.

Macroeconomic factors such as economic indicators, interest rates, and inflation can also affect a company’s medium- to long-term performance. Therefore, when conducting fundamental analysis, parameters such as the company’s profitability ratios, debt levels, and competitive strength in the market should be considered.

Which Sectors Can You Invest in International Equity?

There are many sectors in which you can invest abroad. Companies active in areas such as technology stocks, healthcare, and energy markets are actively traded on global exchanges. Before deciding which sector to invest in, it is important to evaluate the sector’s current developments and future potential. Prominent sectors include:

• Technology Stocks: Global firms leading in software, hardware, and internet services.
• Healthcare Sector: Encompasses various subfields such as pharmaceuticals, biotechnology, and medical device manufacturers.
• Energy Markets: Includes oil, natural gas, renewable energy sources, and infrastructure investments.
• Finance and Banking: Multinational financial institutions and investment banks.

Which Platforms Are Used for International Equity Trading?

Yapı Kredi customers who wish to invest in international equity can trade via Investment World, Yapı Kredi Mobile, and TradeBOX.

Which International Equity Pay Dividends?

Dividend stocks are shares of companies that distribute a portion of their profits at regular intervals. Investors seeking passive income can include these stocks in their portfolios to receive regular returns based on earnings per share.

Abroad, there are large companies that have paid stable dividends for many years. However, since each company’s distribution policy may differ, it is important to evaluate the dividend yield and the company’s financial strength.

Which Strategies Should Be Used for International Equity Investment?

Since investors’ goals and risk tolerances vary, the strategies to be applied also differ. Long-term investment aims to benefit from shares that appreciate over time by making regular savings. Shorter-term strategies such as swing trading aim for quick buy-and-sell profits by capitalizing on market fluctuations.

How Can I Manage Currency Risk in International Equity Transactions?

Foreign exchange rate fluctuations add an extra risk factor to investments made in foreign currencies. Even if the foreign shares you hold appreciate, currency risk can result in lower-than-expected returns when converting back to the local currency. Therefore, it becomes important to use hedging methods such as hedge transactions.

How Are Liquidity and Volatility Assessed in International Equity Trading?

Market liquidity allows for faster and lower-cost buying and selling of stocks with high trading volume. Some stocks on overseas exchanges can be very liquid because they attract significant global investor interest.

Volatility analysis measures the magnitude and speed of price fluctuations. High volatility offers short-term profit opportunities but also carries high investment risks. Low volatility indicates that a stock’s price movements are more stable.

Common Mistakes in International Equity Trading

There are some common mistakes investors encounter during international equity investments. Being aware of these mistakes and applying risk management principles can help you make more informed investment decisions. Common mistakes include:

• Insufficient Research: Trading without adequate information about the sector, company finances, and market conditions.
• Emotional Decisions: Panic buying or selling behavior during sudden price rises or drops.
• Taking Excessive Risk: Neglecting diversification by concentrating the portfolio in a single stock or sector.
• Ignoring Liquidity: Failing to consider market depth of the stock to be bought or sold.