Why did Istanbul Stock Market incur major decline on October 25, 2023?
The stock market in Istanbul, Borsa Istanbul, experienced a significant decline on October 25, 2023. The BIST 100 index lost 7.08% of its value, closing at 7,424.97 points. According to experts the reason for this drop can be attributed to various factors.
The stock market ended the day (October 25, 2023) with a sharp decline. The BIST 100 index fell by 565.45 points compared to the previous close, with a total trading volume of 123.2 billion Turkish lira. The banking index lost 6.89%, and the holding index lost 6.44%. All sector indices experienced declines, with the mining sector being the hardest hit, losing 9.01%. Additionally, the circuit breaker system associated with the stock exchange was triggered twice on the Borsa Istanbul during the day.
According to experts the reason for this drop can be attributed to various factors. Some of these factors are shared below:
1. Global Market Conditions: Analysts noted that uncertainty stemming from conflicts in the Middle East was still affecting global markets. Despite China’s government taking steps to support its economy and reduced selling pressure in bond markets, the ongoing geopolitical tensions had an impact on market sentiment.
2. Expectations of the US Federal Reserve: Speculations regarding the Federal Reserve’s policy decisions played a role. There were expectations that the Federal Reserve would likely keep its policy interest rates unchanged in the upcoming three meetings. This reduced uncertainty and provided some clarity for investors.
3. Earnings Season: In the domestic market, the earnings season had the potential to influence stock and sector-specific movements. As companies released their financial reports, it could lead to increased volatility.
4. Central Bank Decisions: The upcoming meeting of the Central Bank of Turkey (TCMB) and the European Central Bank (ECB) also drew attention. The interest rate decisions made by these central banks could have a significant impact on investor sentiment.
5. ECB’s Monetary Policy: Regarding the ECB, analysts anticipated that the central bank would likely keep its three key policy interest rates unchanged. However, ECB President Christine Lagarde’s statements could provide hints about the bank’s future policies.
6. Upcoming Economic Data: Analysts mentioned that important economic data, such as growth figures, durable goods orders, and weekly jobless claims, were expected to be released in the coming days, which could further influence market movements.
From a technical standpoint, the BIST 100 index was seen to have support at 7,400 points, with resistance levels at 8,080 and 8,250.
(Haberturk)
