Economy in Turkey: Stock Market Rally Gains Strength, Rise Surpasses 4%
Borsa Istanbul extended its strong performance on the last trading day of the week, with the BIST 100 index surpassing the 11,000-point mark and recording gains of over 4%. The upward momentum was supported by recent domestic developments and global market optimism ahead of key U.S. data releases.
Market Overview
The BIST 100 index opened Friday with a 0.86% increase at 10,699.82 points and continued to rise steadily through midday. By 1 p.m., the index had surged by 3.93% to 11,025.33 points, with total trading volume reaching 169.7 billion lira. The banking index led the gains with a sharp 6.97% rise, while the holding index climbed 2.59%. All sector indices were in positive territory, with no sector posting losses.
Domestic Factors Boost the Rally
The rally gained momentum after the court rejected the CHP Congress case, which was perceived positively by investors and triggered a wave of buying. The BIST 100 index broke past the 11,000 threshold, while the banking sector advanced more than 7%. The industrial and services sectors also posted strong performances, both rising above 2%.
Focus Shifts to U.S. Inflation Data
Global sentiment was lifted by renewed optimism over upcoming trade talks between the United States and China, which boosted risk appetite in international markets. Investors are now turning their attention to U.S. inflation figures set to be released later today.
Central Bank’s Role in Market Momentum
On Thursday, the Central Bank of Turkey (CBRT) reduced its one-week repo rate by 100 basis points, bringing it down to 39.5%. Meanwhile, the CBRT’s total reserves reached a record $198.4 billion as of October 17. The balance of FX-protected lira deposits (KKM) declined by 34.2 billion lira to 205.3 billion lira in the same period. Additionally, the CBRT raised the daily limit for export and FX-earning re-discount loans from 4 billion to 4.5 billion lira, effective November 1, 2025.
Analysts’ Outlook
Analysts noted that investors will closely watch the U.S. inflation data, along with the University of Michigan consumer confidence index and PMI figures for manufacturing, services, and composite sectors. Due to the U.S. federal government shutdown, no other official data releases are expected today apart from inflation figures.
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