Highest Closing of 8 months for BIST 100

MSCI Turkey outperformed the MSCI EM by 1.1% yesterday. BIST-100 gained 1.1%, closing at the level of 1,205 with a trading volume 4% lower than the last 5 days’ average. Banking index gained 4.4% and industrials index gained 0.3%. Interest rate on 2-year benchmark bond rate increased to 13.80% (up 15bps) while 10-year bond rate decreased to 13.53% (down 23bps). TRY appreciated by 0.4% vs USD to 7.83 yesterday.

 

BIST 100 Index is currently trading at 1,217 points, realizing the highest levels  in 8 months.

As the index exceeded 1200 points after 3 months, the performance of banking shares and securities investment trust index was effective in subject increase.

Positive trend in global markets and the expectation that the Central Bank of Turkey will increase interest rates at the MPC meeting next Thursday, revived stock purchases.

BIST 100 Index, which has been rising gradually since its opening, completed the day at 1205.37 and realized its highest closing in 8 months on Tuesday.

Thus, the index exceeded 1,200 points for the first time in 3 months. The last time BIST 100 saw 1,200 points was on 27 July this year.

Analysts point out to the expectation of interest rate hike of CBRT,  economic normalization steps, overall trend towards positive real return and continuation of proactive moves in the fight against the rise of inflation, contributes to the rise of BIST 100 index.

Investment trusts and the performance of banking shares drew attention to the rise experienced today. Securities investment trust index increased by 5.55 percent, leading the rise in the BIST 100 index. Banking Index, which includes the shares of banks, gained 4.41 percent. On the other hand, tourism sector become the most profitable among indices with 6.52 percent.

 

Translation: Cem Cetinguc

 

 

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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and www.paraanaliz.com and has contributed to the financial daily Referans and the liberal daily Radikal.