Economy in Turkey: Borsa İstanbul Experiences Significant Losses

As the markets kicked off the new week, they were heavily influenced by geopolitical risks. The exchange rate of the US dollar reached a historic record level of 28.11 Turkish Lira (TL) in a shallow market. Towards the closing hours, there was a rapid decline in Borsa İstanbul (Istanbul Stock Exchange). Meanwhile, the price of a gram of gold reached up to 1673 Turkish Lira during the day.

Tensions in the region escalated once again on Saturday morning when the military wing of Hamas initiated an attack on Israel called “Aksa Storm.” In response, Israel declared a “state of war.” This increased geopolitical risk led to changes in market dynamics. The USD/TL exchange rate exceeded 28 TL for the first time in history. Borsa İstanbul ended the first trading day of the week with losses. The rise in the prices of gram gold, ounce gold, and USD/TL had an impact, causing gram gold to reach 1673 Turkish Lira. Throughout the week, news related to geopolitical tensions will be closely monitored. Experts warn that market movements based on news events could be volatile, and they advise investors to be cautious.

Increasing losses on Borsa İstanbul

Borsa İstanbul started the new week negatively affected by the renewed tension between Israel and Palestine. Throughout the day, it followed a downward trend. The BIST 100 index deepened its losses towards the closing hours, finishing the day with a 3.21% loss at 8193 points.

The banking index recorded a 2.08% decrease at the opening, while the holding index saw a 2.05% decline. By the closing, they had decreased by 3.17% and 3.58%, respectively. Except for the technology index, all other indexes declined, with the highest loss of 6.26% occurring in the financial leasing and factoring index.

From a technical perspective, the BIST 100 index has support levels at 8250 and 8100, while resistance levels are at 8400 and 8550 points.

USD Exchange Rate Surpasses 28 TL

The USD exchange rate reached up to 28.11 TL in international markets during the hours when Turkish markets were closed. By the closing time at 17:30, it was trading at 27.70 TL with a 0.45% premium.

The Euro exchange rate also reached 29.74 TL in the shallow market, while at the same time, it had a 0.09% gain, trading at 29.24 TL.