Financial Stability Committee to Meet on the Morning of September 17
Following deep losses and circuit breaker activations in the markets, economic management took action to evaluate market dynamics.
While the BIST 100 index on Borsa Istanbul faced one of the sharpest sell-off waves of recent times, the Financial Stability Committee, chaired by Treasury and Finance Minister Mehmet Şimşek, decided to hold an emergency meeting to evaluate developments in the markets.
Sharp Sell-Off Wave on Borsa Istanbul
Borsa Istanbul faced one of the sharpest sell-off waves of recent months, with the BIST 100 index dropping 6.65 percent during the day to 12,996.87 points.
As losses exceeded 6 percent, the circuit breaker was triggered on the stock exchange, and a significant decline was recorded across the index.
Major Losses in Sectoral Indices
Amid the general downturn, the banking index lost 7.67 percent of its value, while the drop in industrial indices reached 6.88 percent.
This sudden and deep decline in the markets resonated widely among investors and caused high activity in trading volumes.
Market Developments and CMB Steps
Behind this market volatility were new regulations made by the Capital Markets Board (CMB) in the Guide on Investment Funds.
Liquidity tightness in the fund market and certain developments in the sector were among the primary factors increasing selling pressure across the market.
Fund Outflows and Default Announcement
Pusula Portfolio's announcement that a default had occurred in certain fund redemption payments became one of the prominent developments in the sector.
While it was stated that approximately 129 billion TRY had flowed out of Pusula funds since the end of August, Tera Holding Chairman of the Board Emre Tezmen argued that a speculative attack was launched against their group.
Emergency Meeting of the Financial Stability Committee
Following all these developments, the Financial Stability Committee, chaired by Treasury and Finance Minister Mehmet Şimşek, decided to convene in an emergency session.
The committee came together in accordance with the established schedule to evaluate the latest situation in the financial markets and steps that could be taken.