BIST 100 gains despite sectoral variations

The BIST 100 index closed Wednesday’s session at 10,165, marking a 1.14% increase. However, the recent rally in the banking, insurance, and communication sectors did not extend across the board.

Foreign investors’ net sales of $777 million in the first five months of the year contributed to sector-specific differentiations. Uncertainty surrounding transaction taxes persists, with experts emphasizing the critical nature of the 10,050 support level, which indicates the 50-day moving average on the index.

Market positions above 10,000 amid technical support

In Borsa Istanbul, the BIST 100 index closed at 10,165 Wednesday, reflecting a 1.14% gain. This places the market’s efforts to maintain positions above the 10,000 level in focus. The index’s ability to hold above the 50-day moving average in the last three trading days has not gone unnoticed. The current 50-day average at 10,050 is noted as a significant support level going forward.

Technical analysis highlights potential rebound levels

Following the decline from 11,088 to 9,958 between May 21 and June 11, Fibonacci retracement levels of 23.6% and 38.2% suggest potential rebound levels at 10,220 and 10,385, respectively. This range is identified as the initial resistance zone to monitor.

Top gainers drive momentum

In Wednesday’s session, Pegasus Airlines (+7.62%), West Cement (+7.14%), Ford Otosan (+5.65%), Aksa Energy (+4.62%) and Akfen Renewable Energy (+4.34%) were the top performing stocks within the BIST 100 index.

Eregli Iron & Steel, Akbank, Turkcell, Turkish Airlines and Sisecam were among the stocks experiencing the highest inflows. TUPRAS, Koc Holding, and PETKIM saw the most outflows.

Positive sentiment supported by external factors

Positive market sentiment was supported by news influencing the market’s ability to hold the 10,000 support level. Factors included the US CPI data for May falling below expectations, reports suggesting the Turkish President’s reluctance toward a transaction tax on the stock market, positive statements on bilateral relations from the U.S. ambassador to Ankara and increasing dialogue between the AK Party and CHP in domestic politics.

Foreign investment trends

Despite the BIST 100 index closing the year with a 35.9% gain, there are some concerns about foreign investor activity. Despite the gains in key sectors like banking, insurance, and communication, foreign investors have been net sellers of stocks in the first five months of the year, selling a total of $777 million.

Expectations for market recovery

With the end of the holiday, the potential resolution of transaction tax uncertainties, the commencement of the delisting process from the grey list, the decline in the consumer price index and the anticipated Moody’s credit rating upgrade in July, there is an expectation for renewed foreign interest in the market.