Share Buybacks Increase on Borsa İstanbul Following Fund Crisis and Sharp Sell-Offs
Following the fund crisis in the market, companies took action to halt the decline, purchasing billions of liras worth of shares.
Following the fund crisis on Borsa İstanbul and the sharp selling pressure in September, 113 companies carried out a total of 13.1 billion TL in share buybacks between September 1 and October 14.
The fund crisis, which began with some funds of Tera Portföy and Pusula Portföy defaulting, showed its effects across Borsa İstanbul, and the loss in the BIST100 index reached 17 percent by the end of September. In order to curb this sharp decline, companies accelerated their share buyback programs.
With the decision taken by the Capital Markets Board (SPK) on September 22, the upper limit of the total price applied in share buybacks was lifted until a second announcement. Following this regulation, a total of 113 companies engaged in share buybacks between September 1 and October 14.
Out of these companies, 79 announced their buyback decisions after September 1, and 73 announced them after September 14, when the sharp sell-offs in the market deepened. During the specified one-and-a-half-month period, 113 companies carried out a total of 13.1 billion TL worth of share buybacks.