Economy in Turkey: Borsa Istanbul reverses its direction and experiences strong upward trend

After four trading days of losses, Borsa Istanbul reversed its direction and experienced a strong upward trend. The Borsa Istanbul 100 index rose above 9000 points again, with the banking index surging by more than 5 percent.

Borsa Istanbul completed the past four trading days with losses, but had an enthusiastic session on the fourth day of the week. The upward momentum accelerated in the afternoon. The BIST 100 index rose above 9000 points again, and the banking index surged by more than 5 percent.

Meanwhile, the Central Bank of the Republic of Turkey (CBRT) announced yesterday that as part of additional tightening measures to support its tight monetary policy stance, mandatory reserves based on loan growth would be established. Mandatory reserves in Turkish lira will be held blocked for one year for the portion of loans exceeding the monthly growth rate of 2 percent set by the Central Bank. The impact of the Central Bank’s measures, especially on the stock market, is closely monitored by investors.

Rapid rise in banks

The BIST 100 index started the day with a gain of 0.61 percent, opening at 8797 points, and traded in the range of 8797 – 9054. While the increase in the index exceeded 3 percent, the psychological level of 9000 points was surpassed again, and the index closed the day at 9054 points, with a 3.54 percent increase.

The banking index led the rally, with gains exceeding 5 percent during the day. While the banking index recorded an increase of 0.54 percent and the holding index an increase of 0.35 percent at the opening, they closed with gains of 5.43 percent and 3.21 percent, respectively.

From a technical perspective, support levels for the BIST 100 index are at 8700 and 8600, while resistance levels are at 8900 and 9000 points.

Yesterday, the Borsa Istanbul 100 index, which followed a selling trend, closed the day with a loss of 1.31 percent at 8744 points.