Sharp decline in Borsa Istanbul: BIST 100 halted and losses reach 5%

Following sharp declines driven by global and local developments, the BIST 100 index on Borsa Istanbul experienced losses approaching 5%, and a circuit breaker was implemented in the market.

Sharp Decline in the Market

After completing the September 15 trading session with a 2.41% decline at 13,892 points, the BIST 100 index on Borsa Istanbul deepened its losses on September 16.

As losses approached 5%, a circuit breaker was implemented on the exchange, and the uptick rule was introduced for short-selling transactions until the end of the session to curb sales.

Global Developments and Risk Appetite

The negative outlook in global markets, expectations of interest rate hikes by the Fed in the US, high global bond yields, and oil prices remaining above $100 are weakening risk appetite.

Tacirler Investment Research Manager Serhan Yenigün stated that the US 10-year bond yield remaining above 5% and oil hovering at high levels are increasing energy costs.

Pressure Originating from the Fund Sector

Economist Tuncay Turşucu conveyed that outflows from portfolios are occurring due to developments in the fund sector, and funds are selling stocks to meet their cash payment needs.

These fund outflows and stock sales were among the factors that created additional selling pressure in the Borsa Istanbul market and accelerated the decline in the index.

Technical Levels and Expectations

With yesterday's drop, the BIST 100 broke the 50-day moving average at the 14,095 level to the downside, leaving behind a critical threshold in technical terms.

While analysts are monitoring the 13,800 - 13,550 point band as support levels, Serhan Yenigün stated that targets above 19,000 points remain protected over a 12-month period.