BIST 100 Index Plummets on Borsa Istanbul as Circuit Breakers Triggered
The BIST 100 index lost over 5% to close the day at 13,122 points, as global and local financial developments triggered heavy selling.
On Borsa Istanbul, the BIST 100 index closed the day at 13,122 points following a sharp decline of over 5% during the session, prompting circuit breakers to be activated due to extraordinary market volatility.
Index Losses and Circuit Breakers
As the selling wave gained momentum on Borsa Istanbul, the BIST 100 index lost more than 5% in value and closed the day at the 13,122 point level.
As a result of this significant drop, market circuit breakers were triggered, and trading was temporarily suspended for 10 minutes starting at 16:04.
Sectoral Declines Observed
In transactions carried out on September 16, the banking index suffered losses exceeding 4%, while the financial and IT indices saw drops of over 5%.
Meanwhile, the decline rate in financial factoring companies exceeded the 9% threshold, demonstrating a deepening of the overall negative atmosphere in the market.
Global Risks and Oil Prices
Behind the market decline were the escalation of tensions in the Middle East over the past week and developments in Yemen.
With the seizure of an island at the entrance of the Red Sea, oil prices rose, while discussions regarding artificial intelligence risks also pressured global markets.
US Interest Rates and Pusula Portföy Process
The rise in US bond yields increased investment loan costs, while the default of Pusula Portföy in Turkey negatively impacted the market.
Muhammed Yarız, Chairman of the Board of Pusula Portföy, was arrested, and a travel ban abroad was imposed on Serdar Turhan, Chairman of the Board of Pusula Holding.
Economists' Evaluations of Internal Dynamics
Baki Atılal, Deputy General Manager of Research at A1 Capital, listed the low foreign depth and high TRY interest rates as key internal dynamics.
The weakening of companies' real profit outlooks and diminishing expectations for interest rate cuts by the Central Bank were also among the factors that amplified the sales.