Istanbul Stock Market: Shares of 29 companies fall below peak prices

Recent public offerings have seen a reversal after “consecutive peaks trend” driven by an influx of investors into the stock market. Out of the 33 companies that went public this year, the shares of 29 have fallen below their peak prices, with 11 companies experiencing losses ranging from 30% to 51%.

While new companies continue to seek public offerings every day, 29 out of the 33 companies that went public this year are trading at prices lower than their peak. It is noteworthy that among the 10 stocks with the highest losses, excluding the three companies currently experiencing a ceiling trend, the majority are those that went public after the elections and made at least 10 peaks.

The “public offering frenzy” that has been gaining momentum in the Turkish stock market for the past three years is making its mark in 2023. Although companies that have pushed the peak series into double digits continue to trade well above the public offering prices, a descent from their highest levels has begun. Of the 33 companies that went public this year, 11 have experienced price losses of at least 30% from their highest levels, and 10 of these companies were among those that went public after the elections. The sharpest drop from the summit was experienced by Katılımevim, which lost half of its peak price. It is worth noting that, except for the last three public offerings of the year and the first public offering, out of the 29 public offerings, there have been losses from the peak prices, and ebebek shares, which faced short selling and margin trading bans, extended their peak series to the sixth day. Gıpta Kırtasiye, which started trading yesterday, reaching the peak at the opening, was not surprising.

NUMBER OF INVESTORS HITS NEW RECORD AT 7.29 MILLION

Thanks to the impact of the peak series in public offerings, investors have entered the Istanbul Stock Exchange in a significantly higher inflation environment. According to the Central Securities Depository’s data, as of September 13, the number of stock investors reached a new record level of 7.29 million. The public offering schedule, which intensified especially after the elections in recent months, faced record demand from investors. This both increased the number of investors in the stock market and solidified the accepted perception of the ceiling series among investors.

However, after a certain period, public offering shares begin to move in the opposite direction. Especially in public offering shares where the ceiling series continues, decisions such as the short selling and margin trading bans and the gross settlement application from the Istanbul Stock Exchange lead to the first negative movements in public offering shares. Afterwards, mostly sales, and recently, even floor series begin in public offering shares. (Source: ekonomim.com – Sebnem Turhan)