What developments do experts expect in Borsa Istanbul as Israel Hamas conflict continues?
During the ongoing Israel-Hamas conflict, the effects and risks of the conflict continue to influence the stock market. It’s essential to remember that the declines in stock prices can present opportunities for medium and long-term portfolio building.
Turkey’s Treasury and Finance Minister, Mehmet Şimşek, recently met with foreign financial circles in Paris, and he announced plans for another visit to Gulf countries in the coming week. Any potential investment news stemming from these diplomatic efforts could have a positive impact on the previously declining stock market.
In the shadow of the conflict, it is important to monitor where the new balance will be established. The extent of the Israel-Hamas conflict’s reach needs to become clearer. The tension in the Middle East has become a global concern, with the involvement of the United States and the United Kingdom on Israel’s side. Russia has remained relatively quiet so far, but if Iran gets involved due to a ground operation, Russia’s stance may change. The Middle East is also one of the world’s most significant energy production regions, particularly for oil and natural gas. Turkey has geographical proximity to the Middle East, and trade and capital exchanges are intensive, making Borsa İstanbul more sensitive to developments in the region. Additionally, the BIST100 Index was already facing a downward trend even before the conflict, as U.S. and European markets were experiencing a selling trend in recent months.
Whether this situation leads to a market downturn or presents opportunities depends on various factors. It coincides with a time when Turkey is seeking investment from Gulf countries. After President Recep Tayyip Erdoğan’s visits to Qatar, the United Arab Emirates, and Saudi Arabia a few months ago, numerous commercial agreements were signed, creating market expectations. However, there hasn’t been any concrete progress in this regard yet. It’s challenging to predict how the Israel-Hamas conflict’s tension will affect these expectations, and it may or may not have an impact.
Currently, the markets continue to price in the conflict and its potential outcomes. Economic data and central banks may have limited influence during this period. The stock markets may experience volatile fluctuations depending on the course of events. The severity and extent of the conflict will determine where the new balance and support levels will be established.
It’s advisable to monitor technical support levels in this regard. The market downturns can also present opportunities for medium and long-term portfolio building. It’s essential to maintain a realistic outlook and closely follow developments. Assessing risks is crucial as well. When conditions improve, prices may not remain at their current levels.
