Turkish stocks suffered a heavy weekly loss, with the benchmark BIST 100 index of Borsa Istanbul falling 4.44% to close Friday at 11,721.72 points. Only nine of the index’s 100 shares ended the week higher.
Banks held up better than the market. The banking index lost just 0.36% over the week, and several lenders were among the few gainers: İş Bankası (ISCTR) rose 1.74%, Garanti BBVA (GARAN) 1.70% and Yapı Kredi (YKBNK) 0.73%. The conglomerate Sabancı Holding (SAHOL) gained 2.16%, while the week’s best performer was AKFYE, up 2.89%.
MSCI decision weighs on sentiment
Market commentary pointed to index provider MSCI’s decision to freeze changes to Türkiye’s weightings in its indices. MSCI said it needed more time to assess structural reforms that it described as being at an early stage. Finance Minister Mehmet Şimşek said the related legal changes would be completed by early 2027.
Investors also followed a bill on liquidated investment funds that passed a parliamentary committee. It would allow interim payments of up to 1 million lira to investors, capped at each investor’s net investment.
Trading volume has been thin for about a month, and the index has broken below the 12,000 level. Analysts at Kuveyt Türk Yatırım see 11,600 as key support, with 11,420 and 11,250 as the next levels if selling continues.
Mixed macro signals
Economic data were more encouraging. Türkiye posted a $4.05 billion current account surplus in August, above expectations of $3.5 billion, and retail sales rose 1.4% on the month and 10.1% on the year. Foreign investors sold $248.2 million of Turkish stocks in the week to Oct. 9 but bought $451.1 million of government bonds, ending three weeks of selling in the bond market. The central bank’s reserves have also been rising.
Week ahead
Markets expect a 100-basis-point rate cut at the central bank’s Monetary Policy Committee meeting on Thursday, Oct. 22, as outlined in our rate decision preview. Capacity utilisation, real-sector and consumer confidence data are also due, and third-quarter earnings season starts on Oct. 19 with Türkiye Sigorta.
For foreigners managing lira savings or investments while living in the country, our cost of living in Turkey guide puts price trends in everyday terms.
Sources
Photo: Thomas Steiner / CC BY-SA 2.5, via Wikimedia Commons
