BIST100 battles for 9700 support amid foreign investor shake-up

Borsa Istanbul’s BIST 100 index is at a critical juncture this week, with market participants watching the 9700 level closely.

After closing last week at 9668 – a 1.57% drop – the index has slipped below this key support level, sparking concerns about further declines.

Concurrently, foreign investors’ trading activities throughout 2024 have resulted in significant fluctuations in the shares of major companies, including Turk Telekom and TUPRAS.

What does 9700 key level mean?

• BIST 100 performance: Last week, the BIST 100 index recorded a 1.57% decline, closing at 9668. This marks the third consecutive week that the index has fallen below the critical 9700 support level, which has served as a key benchmark for market stability.
• Expectations for the week: Analysts are cautiously optimistic about a positive start for BIST 100 this week, particularly after speculation regarding changes in economic management was dispelled. However, maintaining a position above the 9700 mark is crucial. A failure to sustain this level could lead to a downward move toward the 200-day moving average, which is around 9200.

Why does BIST100 see decline?

• Economic slowdown signals: Recent indicators of an economic slowdown, a persistently high interest rate environment, disappointing corporate earnings, and ongoing sell-offs by foreign investors have been the primary drivers behind the recent downturn in the market.
• Future outlook: There is a potential for a shift in market sentiment in September, with expectations of a rating upgrade from Fitch and the possibility of an interest rate cut by the Federal Reserve, which could help bolster investor confidence.

Here top stocks bought by foreign investors in 2024

• Turk Telekom: Foreign investors increased their stake by 8.34%, making it the top stock purchased by foreign investors in 2024.
• Aselsan Saw a 2.71% increase in foreign ownership.
• Coca-Cola: Foreign investors upped their shares by 1.13%.
• Iskenderun Demir Celik: Witnessed a 0.52% rise in foreign investor participation.
• Halkbank: Experienced a 0.45% increase in foreign holdings.
• Yapi Kredi: Had a 0.36% uptick in foreign ownership.

What are top Stocks sold by foreign investors in 2024

• TUPRAS: Saw the largest reduction in foreign investor participation, with a decrease of 11.57%.
• Eregli Demir Celik: Foreign ownership fell by 10.11%.
• Turkcell: Experienced an 8.56% drop in foreign investor holdings.
• THY: Saw a 7.82% decline in foreign ownership.
• Tofas: Foreign investors reduced their stakes by 7.64%.