Turkish shares extended their slide on Friday, with Borsa Istanbul’s benchmark BIST 100 index falling below 11,000 points for the first time since early December last year, despite an interest rate cut by the central bank the day before.
The index hit an intraday low of 10,963 points in the morning and was at 10,926.54 at midday, down 2.62% on the day, the news site Son Dakika reported. That was the lowest level since 5 December 2025. The fall came after the index had already dropped about 3% on Thursday.
Six weeks of losses
If the BIST 100 closes the week lower, it will mark a sixth straight weekly decline, the longest losing streak since February 2008, according to Son Dakika. The market had already fallen 4.44% in the previous week, as reported in our weekly market report.
The selling comes despite the Central Bank of the Republic of Türkiye (CBRT) cutting its policy rate by 100 basis points to 36% on Thursday. Lower rates usually support share prices by reducing borrowing costs for companies and making bank deposits less attractive, but the cut was not enough to lift sentiment.
Fund law and company news weigh
Market commentary linked the weakness in part to the investment fund crisis. On Thursday the Turkish parliament passed a bill on funds being wound up, which allows assets to be seized in related investigations and gives the Capital Markets Board (SPK) the task of setting each fund’s losses and reporting those responsible to the Savings Deposit Insurance Fund (TMSF), the state body that manages seized companies. The authorities have said investors in the affected funds will be repaid in stages; our earlier report explains how much has been paid so far.
Individual stocks also dragged the index lower. Shares in steelmaker Erdemir fell by as much as 8% during the day after its earnings report, and Zorlu Enerji dropped by up to 9%, the financial news site Borsamatik reported. Bloomberg HT reported on Friday that Zorlu Enerji has asked holders of its 1.1 billion dollar bond to approve a six-month delay to a coupon payment of about 55 million dollars that was due this week, pushing it to April 2027. Bondholders are due to vote on 23 November.
What it means for foreign residents
The BIST 100 is the main gauge of the 100 largest listed companies in Türkiye. Foreign investors hold a large share of the free float, so sharp falls often reflect global risk appetite as well as local news. Rising oil prices linked to tension in the Gulf have also weighed on emerging markets this week.
For foreigners who own property or keep savings in Türkiye, a falling stock market does not directly change the value of a home or a lira deposit, but it can signal wider caution about the economy and the lira. The central bank’s latest survey shows year-end inflation expectations of 29.63%, still well above the official target. Our guide to buying property in Türkiye as a foreigner explains how currency moves affect the purchase process.
Sources
- Endişelendiren tablo! Borsada 18 yıl sonra bir ilk yaşanıyor (Son Dakika)
- Satış baskısı arttı, endeks kritik seviyenin altında! (Borsamatik)
- Zorlu Enerji kupon ödemesini altı ay ertelemek istiyor (Bloomberg HT)
Photo: Tötös Ádám / Unsplash License, via Unsplash
