Sharp drop in Borsa İstanbul: All gains of the year wiped out

The Borsa İstanbul (BIST 100) index declined to the 10,800 point levels due to intense selling pressure experienced on the final trading day of the week. The combination of fund investigations that began approximately 40 days ago, the Central Bank of the Republic of Turkey's (CBRT) 100 basis point rate cut, and turbulence in global markets led to a loss of confidence in the markets, wiping out all returns the index had achieved since the beginning of the year.

On a sectoral basis, losses in the banking index exceeded 6 percent, while the decline in the communications index exceeded 8 percent. In global markets, Brent oil prices rising above 114 dollars and the increase in US bond yields stood out as the main external factors deepening the selling pressure on Borsa İstanbul. Although recovery buying at the end of the day pushed the index slightly upward, anxiety in the markets persists.