Investors in Istanbul Stock Market dazed due to volatility
The BIST 100 index in Borsa Istanbul experienced heavy losses in the afternoon after starting the day with an increase. Although losses are converted into gains in subsequent transactions, high volatility continues. Experts evaluated recent developments.
The BIST 100 index on the Borsa Istanbul started the day with a gain of 120.69 points and 2.55 percent compared to the previous close, with a gain of 4,849.57 points.
At noon, the rise was replaced by hard losses. at around 13:30, the decline in the BIST 100 index was at the level of 1.60 percent. With the purchases that followed, the BIST 100 index turned its direction up again and as of 15:00, the levels of 4,745 with an increase of 0.30 percent was seen.
Yesterday, the index-linked circuit breaker system had worked with the increasing downward trend in the BIST 100 index.
Experts shared following evaluations: Noting that there is a search for a correction in the BIST 100, which has risen a lot with the statements about the election period as of the new year, an expert said, “The stock market is not a one-way investment vehicle. It is normal to experience risks and withdrawals from time to time. But investors with new and overdraft transactions are panicking in downturns.”
‘IT NEEDS TO BE BALANCED AS SOON AS POSSIBLE’
The expert continued as follows; “Interventions that should have prevented the market’s decline, such as the circuit breaker rule, remained limited. After that, the lost trust will be restored completely with the gradual decrease of excessive volatility. In other scenarios, the psychology of investors or participants whose knowledge of the stock market is relatively limited may not be able to cope with it.
As long as the inflationary environment continues, there is still potential, but the index should come to balance as soon as possible and get back on track. The search for a balance without sharp intraday retracements is essential for a healthier market.”
‘THE WAVELENGTH WILL BE VERY HIGH THIS YEAR’
Another expert stated that he expected the volatility to continue throughout 2023 and listed the reasons as follows;
“The wavelength will be very high this year. We started the new-year with a very high premium from last year. When there are some disturbances, the investor takes his profit and exits. Foreign sales continue. The election period has been entered, an announcement may come at any moment.
Bank shares are the locomotive of the BIST 100 index. It is also not possible to predict how much the profitability of the sector will be affected by the continuous precautionary measures introduced in relation to the banking sector. Therefore, the investor cannot see ahead. Although banks have been cheap recently, they show very high fluctuations.
Despite all this, the theme of high inflation and low interest rates continues. Purchases can also come from low prices after sales. Another issue is public offerings. This causes promissory note changes in the market. In particular, the decision taken by the SPK (Capital Markets Board) regarding reverse repurchase transactions today also has an impact. All this is reflected in the index performance”
WHAT SHOULD INVESTORS DO?
Reiterating that the year 2023 will pass with volatility, same expert advised investors not to make overdraft transactions. He said, “investments should not be made by selling assets or using loans. Share investments are to be made with savings.”
