Sharp decline and circuit breaker on Borsa Istanbul
Developments in the fund market and default announcements triggered a sell-off wave on Borsa Istanbul, activating the circuit breaker.
As the BIST 100 index lost close to 7% under the influence of geopolitical risks, developments in fund markets, and default announcements, the circuit breaker system was activated.
Sharp Loss in the BIST 100 Index
The BIST 100 index on Borsa Istanbul dropped by nearly 7% during the day to 13,003.70 points, and trading was temporarily halted.
While the index finished the day with a 5.54% loss at 13,123 points, the banking index was among the sectors that declined the most.
Outflows from Fund Markets
Following MSCI Index warnings and fund regulations, a net outflow of 129 billion liras occurred from 104,7 funds open to TEFAS starting from August 28.
These developments laid the groundwork for additional selling pressure to form in the markets.
Default Announcements and Companies
Pusula Portföy announced that the participation share redemption payments of certain investment funds had fallen into default.
Tera Portföy also reported that two of its funds had fallen into default and that redemption requests for 6 investment funds would be met on the 10th business day.
Financial Stability Committee Convenes
Following the sharp fluctuations in the stock market, the Financial Stability Committee convened under the chairmanship of Treasury and Finance Minister Mehmet Şimşek.
The current situation in the markets and the steps to be taken were evaluated at the committee meeting.
The Fed's Interest Rate Decision
The US Federal Reserve (Fed), after a long hiatus, raised its policy rate by 25 basis points to the range of 3.75 to 4 percent.