What is Brokerage House Distribution (AKD) and How to Interpret It?

All investors trading in Borsa Istanbul transmit their buy-sell orders through brokerage houses authorized by the CMB. The report showing which brokerage house made how much purchase or sale in which stock during the day is called Brokerage House Distribution (AKD). AKD is the most effective way to track the invisible face of the stock market, namely cash inflows and outflows in stocks and the movements of major institutional players (market makers, funds, foreign institutions). Interpreting AKD data correctly helps understand whether the price movements in a stock are persistent.

When looking at an AKD table, the first place to examine is the 'Net Buyers' and 'Net Sellers' lists. These lists show the top 5 institutions that made the most net purchases and the top 5 institutions that made the most net sales throughout the day. If the total purchase amount of the top 5 buyer institutions constitutes a high percentage of the total transaction volume, such as 70-80%, it can be said that the purchases in that stock are concentrated (accumulated) and major players show a strong appetite for buying. On the contrary, if sales are concentrated in the top 5 institutions and buyers consist of many scattered institutions, it can be interpreted that the selling pressure on the stock is high and goods are being distributed to small investors.

In AKD analysis, the identities of the brokerage houses also matter. For example, purchases by institutions brokering transactions for foreign investors (large global investment banks) or major domestic funds are monitored more closely in the market. The fact that these institutions are in a net buyer position in a stock for days in a row is considered a strong signal that a medium-to-long term uptrend may begin. On the other hand, purchases by institutions heavily used by retail investors are generally considered short-term and scattered, so they may not create a lasting effect on the price.

However, using AKD analysis alone as a buy-sell signal can lead to some misconceptions. Big players can sometimes try to hide their transactions by using different brokerage houses or they can sell the stocks they bought during the day on the next day (transfer transactions). Therefore, AKD data must be evaluated together with support-resistance levels in technical analysis, settlement analysis (where the shares are deposited), and instant depth data. While AKD takes an instant X-ray, settlement analysis shows the general ownership of the stock.

Our Sermaye Borsasi Telegram data terminal bot offers users the opportunity to query the instant Brokerage House Distribution of any stock they want in seconds. You can track which stock received hot money during the day and in which stock foreign institutions sold through our bot instantly. Tracking the footprints of big players is one of the most important strategies to reduce your risk of losing in the stock market. As Sermaye Borsasi, we recommend our investors to make data-driven decisions.