The sale wave that started in TL assets after the detention of Istanbul Metropolitan Municipality (IBB) Mayor Ekrem İmamoğlu was more subdued yesterday. On March 19, the Borsa Istanbul BIST100 index lost $31.5 billion in market value, but yesterday, the best buyers were intermediary institutions supported by the Turkey Wealth Fund (TVF), while company owners announced share buyback programs exceeding 5.5 billion Turkish lira.
The detention of Ekrem İmamoğlu, the Mayor of Istanbul, on various charges led to a shift in the pricing of TL assets. The Borsa Istanbul BIST100 index experienced its largest drop in history on the previous day, with a loss of 8.72%, while yesterday, public intermediary institutions supported by the Turkey Wealth Fund led the purchases. Despite a loss of $31.5 billion in market value in one day, the BIST100 index tried to stay on the positive side, although the banking index, which has been most affected by the monetary policy that has evolved into interest rate cuts since June 2023, experienced a loss of over 5%.
Additionally, yesterday, a collateral call of 1.85 billion lira was met. Company owners also began announcing share buyback programs after the Capital Markets Board (SPK) relaxed regulations. By 5 PM yesterday, share buyback programs worth over 5.5 billion lira were announced, while companies made buybacks exceeding 115 million lira on the previous and the current day.
With the decision published by the Capital Markets Board on the previous evening, in order to ensure the smooth operation of the markets, it was announced that until a second announcement is made, companies listed on the stock exchange and their subsidiaries can start buyback programs with a management board decision without the need for a general assembly decision, to be presented at the first general assembly meeting.
