Economy in Turkey: Sharp decline in Istanbul Stock Market

December 25, 2023December 25, 2023 BTT

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Borsa Istanbul, which has been in the spotlight with its volatile performance in recent times, saw a significant drop today, continuing the trend from three days ago when President Erdogan called on the Capital Markets Board (SPK) and Borsa Istanbul (BIST) management, saying, “We cannot leave the field empty.” The BIST 100 index on Borsa Istanbul lost 3.87% and closed the day at 7,264 points.

While the BIST 100 index decreased by 292 points compared to the previous closing, the total trading volume reached 42.6 billion Turkish liras. The index has lost a total of 9.12% in the past week.

ERDOGAN’S CALL TO SPK AND BIST

On December 22, 2023, during the 150th Year Gong Ceremony of Borsa Istanbul, President Recep Tayyip Erdogan, addressing the SPK and BIST management, had shared following:

“We cannot leave the field empty for those who try to manipulate the capital markets” and continued as follows:

* Our stock exchange, with its 150-year-old history, stands as one of the closest witnesses to Turkey’s ups and downs over the past one and a half centuries.

* An all-encompassing campaign was carried out aiming to discredit Borsa Istanbul, especially by the opposition’s presidential candidate. Investors were intimidated with scenarios of bankruptcy and failure.

* However, in developed countries, especially in continental Europe, a different picture emerges. There, politicians do not dream of winning elections by denigrating the country’s capital markets, nor does the system allow such manipulation.

* We cannot leave the field empty for those who try to manipulate the capital markets.

* We expect both SPK and BIST to show more sensitivity in this regard.

* We are determined to establish an environment where our citizens can evaluate their savings with peace of mind and contribute to the real economy.

* With the control of the increase in inflation, we believe that the flow of funds to our country will accelerate even more.

ŞİMŞEK: ‘NOT A PLAYGROUND’

In the same ceremony, Minister of Treasury and Finance Mehmet Şimşek, in his speech, stated, “The stock market is not a playground. Therefore, the efforts of the SPK will become effective in the coming period. If we are to direct our savings towards investment, employment, production, and exports, we must ensure price stability.”