Economy in Turkey: Istanbul Stock market decline continues for the fourth day

As Borsa Istanbul extends its decline for the fourth consecutive day, it continues to trade below 9000 points. Experts noted that the additional tightening measures taken by the Central Bank of the Republic of Turkey (CBRT) yesterday to support its tight monetary policy stance have particularly pressured the banking index.

The BIST 100 index started the day with a 0.05% loss at 8856 points, later moving within the range of 8736 – 8908. At the end of the day, the index fell by 1.31% to 8744 points.

At the opening, the banking index recorded a 0.71% decrease and the holding index recorded a 0.13% decrease, while at the closing, they traded with losses of 1.89% and 1.02%, respectively.

From a technical perspective, analysts indicated that the support levels for the BIST 100 index are at 8,800 and 8,700, while 8,900 and 9,000 points are highlighted as resistance levels.

Yesterday, the Borsa Istanbul 100 index followed a selling trend and closed at 8860 points with a 0.53% loss.

New step from the CBRT

The CBRT announced a reduction in the monthly growth limit for TL commercial loans from 2.5% to 2% within the scope of securities issuance based on credit growth, and a decrease in the monthly growth limit for consumer loans from 3% to 2%, while maintaining the 2% limit for vehicle loans.

The CBRT announcement stated, “In addition to the securities issuance, work continues on the establishment of mandatory reserves based on credit growth. Moreover, additional measures are being worked on to strengthen the monetary transmission mechanism.”

Awaiting Fitch’s decision

On the other hand, international credit rating agency Fitch Ratings stated that it expects Turkish Islamic banking to continue to grow slightly above the sector average in 2024 compared to previous years.

Additionally, investors are focused on Fitch Ratings’ Turkey assessment report, which is expected to be released after markets close on Friday.