Decline Continues in the Stock Market: Fund Liquidations and MSCI Decision Create Pressure
While the BIST 100 Index completed the week with a 4.4 percent drop at 11,721 points, fund liquidations and MSCI's index decision deepened the selling pressure in the market.
The downward trend that started after the BIST 100 Index hit the 14,673 level on September 9 continued. Fund liquidations and moves by global index provider MSCI played a role in the index closing the week with a 4.4 percent loss in value at 11,721 points.
Although the BIST 100 Index reached a trading volume of 116.2 billion liras on Friday, it closed the week with a decline as 91 stocks lost value. Meanwhile, the BIST All-100 Index recorded a 10.5 percent decline on a weekly basis. Concerns over fund liquidations and MSCI's statements played a decisive role on the markets.
MSCI announced in a statement on October 15 that it has suspended the process of adding new stocks to the Turkey Investable Market Index and moving stocks to larger-scale segments. The institution expects structural steps to be completed by June 2027. On the other hand, it was determined that foreign investors exited the market by selling 248.2 million dollars worth of stocks as of October 9.
While a total of over 6.4 billion liras in cash transfers were provided to 43,643 investors in funds belonging to A1, Bulls, and Pardus portfolio firms, the CMB also made a liquidation decision for Hedef Portfolio funds. Meanwhile, expectations are being monitored in the markets that the CBRT will cut the policy rate by 100 basis points to 36 percent at its October meeting.