Sharp Selloff at Borsa Istanbul: What Development Played a Role?

October 1, 2024 BTT

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The Borsa Istanbul 100 Index (BIST 100) experienced losses throughout the day, with the decline deepening due to rising geopolitical risks. Losses in the BIST 100 index exceeded 3%, while the banking index saw a nearly 5% drop. Experts noted that the break of a key technical level also contributed to the selloff.

Borsa Istanbul had closed the previous three months on a negative note, and the new month and final quarter began with sharp declines. The BIST 100 index dropped more than 3% during the day, and the banking index fell nearly 5%. The selloff was largely driven by reports from a senior U.S. official at the White House that Iran was preparing to launch a missile attack on Israel. Meanwhile, gold and oil prices saw rapid increases.

Sharp Selloff at Borsa Istanbul

The BIST 100 index began the day with a limited rise but later turned negative, seeing sharp losses as the day progressed. The index closed the day down by 3.25%, falling by 314.56 points to 9,351.22 points. The banking index lost nearly 5%, closing down by 4.58% at 13,739.87 points. None of the sector indices posted gains, with the mining index experiencing the largest loss at 5.77%.

Among the BIST 100 stocks, only five closed the day in positive territory, with Alfa Solar Enerji (ALFAS) rising the most at 5.13%. The biggest loser was Karsan Otomotiv (KARSN), dropping 9.97%.

What’s Happening in Global Markets?

In global markets, while comments by U.S. Federal Reserve (Fed) Chairman Jerome Powell supporting expectations of a “soft landing” for the U.S. economy boosted risk appetite, growing recession fears in Europe continued to make it difficult for markets to find direction. As the battle against inflation nears its end worldwide, the question remains whether economies can navigate this process without falling into recession.

Geopolitical developments also triggered selloffs in global markets. New York stock indices started the day lower, while European markets experienced widespread selling pressure.