Borsa Istanbul circuit breaker works twice, experts explain reasons for decline

The daily decline in Borsa Istanbul exceeded 7 percent and the index-based circuit breaker worked for the second time. The loss was 7.37 percent at the close. Experts explained the reasons for the decline.

The daily loss in the banking index was 9.20 percent, while the loss in the industrial index was 6.79 percent.

Experts evaluated reasons for said decline in Istanbul Stock Market, today as follows:

‘ELECTION EXPLANATIONS WERE EFFECTIVE’

A sales strategist evaluated reasons for the selling pressure which went up toward the close in Borsa Istanbul. The expert said, the statement by President Erdogan regarding early election had accelerated the decline.

Noting that he did not observe any other reason in the background, the expert said he considered the situation normal after the breathless rise in the market, addingadditional withdrawals were possible.

‘PANIC SELLING WITH UNCERTAINTIES’

The research director of another brokerage firm said that it was difficult to explain the reason for the sales, and that panic sales by relatively inexperienced investors who had entered the market recently might have had an impact.

Assessing that a number of uncertainties related to the election and the dismissal of Istanbul Mayor Ekrem Imamoğlu might have also caused sales, the market expert said there might be a retreat of up to 5 thousand points in the BIST 100.

Noting that there was no change in the low interest rate, high inflation environment, the expert said that there might be a recovery, but it was difficult to see the level of 6 thousand points in the BIST 100.

SOURCE: sozcu.com.tr/2023/finans/borsa-istanbul-devre-kesti-2-7546795/
Translated and edited by BTT