Borsa Istanbul showed a volatile trend on the first day of the week following Moody’s surprise decision to raise Turkey’s credit rating by two notches. While the BIST 100 index set a new closing record, the banking index lost more than 1%. Experts noted that the two-notch upgrade was not strongly priced in, suggesting that the positive outlook on the stock market might continue, but they also warned investors of potential profit-taking.
The international credit rating agency Moody’s, on the past Friday, raised Turkey’s credit rating by two notches to B1, marking the first time in its history for such an upgrade. It was widely expected that there would be a one-notch increase. While the possibility of a two-notch upgrade was within expectations, the fact that both the rating and the outlook were on the positive side was not strongly factored into the pricing. Experts commented, “This is a significant development that could provide a positive perception of the index in the future.”
On the other hand, markets are awaiting the Central Bank of the Republic of Turkey’s (CBRT) interest rate decision, which will be announced tomorrow. The CBRT Monetary Policy Committee, chaired by Central Bank Governor Fatih Karahan, will meet on Tuesday, July 23, and the bank will announce its interest rate decision at 2:00 PM on the same day. Economists expect the CBRT to keep its policy rate steady at 50%.
Volatile Trend in Borsa Istanbul
Borsa Istanbul, which ended last week with a record, started the first trading day of the week with a rise of 0.24%, reaching 11,182 points. The index traded between 11,119 and 11,245 points throughout the day and closed at 11,172 points, up 0.15%, setting a new closing record.
From a technical perspective, resistance levels for the BIST 100 index are at 11,250 and 11,350 points, while support levels are at 11,000 and 10,900 points.
At the opening, the banking index fell by 0.64%, while the holding index rose by 0.45%. At the close, these indexes moved by 1.39% decrease and 0.82% increase, respectively.
