TRY assets a buy?
Fadi Hakura, Turkey Analyst at Chatham House, warned foreign investors to be extremely cautious when considering the country, adding that Erdogan has interfered in the independence of several market regulatory authorities.
But for now investors are eyeing the region as a good opportunity to cash in on renewed good sentiment, at least in the near term.
"While this is a bullish signal in the near term, let's not forget that the political year is not over, with new elections -- this time presidential ones -- in August. But for now, buy TRY assets," said Anne.
Read MoreTurkey, an emerging market dream turned into a nightmare
Lead portfolio manager and head of Hermes emerging markets, Gary Greenberg and his team moved Turkey to an overweight position last month, with positions in propane gas distributor Aygaz, white goods company Arcelik and government-owned bank Halkbank.
"The combination of tapering and political unrest has hit the Turkish market hard, resulting in a 30 percent drop in dollar terms from the peak in May 2013. Turkey's currency has lost more than 25 percent since May 2013, when tapering was first mentioned. Six-month Turkish Libor has jumped from 5.1 percent to 9.4 percent over this period, and the economy duly slumped. Given these headwinds, the market has de-rated and is now looking cheap," said Greenberg.
"We continue to believe that civil society and its institutions are strong enough to withstand the strain, even if it involves a change in government. The listed business sector is strong and represents good value on a medium term view," he told CNBC.