Economy in Turkey: Istanbul Stock Market experiences sharp decline
The BIST 100 index in Borsa Istanbul completed the day at 7,680.36 points with a sharp drop of 3.54 percent. While the BIST 100 index decreased by 281.62 points compared to the previous closing, the total trading volume reached 109.8 billion Turkish liras.
The banking index decreased by 0.38 percent, and the holding index decreased by 3.89 percent. While all sector indices declined, mining was the biggest loser with a 6.83 percent decrease.
WHAT ARE THE ANALYSTS SAYING?
Analysts stated that global equity markets were volatile on the first trading day of the week when the monetary policy decisions of the central banks of the United States, the United Kingdom, and Japan would be announced, and noted that domestic attention was focused on the interest rate decision of the Central Bank of the Republic of Turkey (CBRT).
In pricing in the money markets, analysts reminded that there was a 99 percent probability that the policy rate would remain unchanged in the Federal Reserve’s meeting on Wednesday, and they reported that attention was turned to the policy statement and the signals in Federal Reserve Chairman Jerome Powell’s statements after the meeting.
CHAIRMAN OF ALIBABA: TURKEY HAS POTENTIAL TO BECOME LEADER E-EXPORT COUNTRY
The Chairman of the Alibaba Group, stated that Turkey had the potential to become the world’s leading e-export country and announced plans for $2 billion in investment in the future.
On the other hand, in line with data indicating an acceleration in conversions to Turkish Lira (TL), the CBRT took additional measures to support TL deposits. The commission application, in which protected accounts in foreign exchange (currency protected deposits / KKM) were counted as TL deposits, has ended, and conversion and renewal rates will be determinative.
NEW DATE FOR CONVERSION OF INDIVIDUAL TRANSFORMATION ACCOUNTS
In addition, with the CBRT communiques published in the Official Gazette, a technical change was made in the date condition of individual transformation accounts, and the date was changed from June 30, 2023, to August 31, 2023. Accordingly, domestic resident individuals will be able to convert their existing gold, dollar, euro, and British pound deposits and participation fund accounts in banks into TL as of August 31, 2023.
Analysts stated that the domestic data agenda would be calm tomorrow, while in foreign countries, inflation in the Eurozone, and housing started and construction permits in the United States would be monitored, and from a technical perspective, they noted that the BIST 100 index had resistance levels at 8,000 and 8,100, and support at 7,600 points.
