Istanbul Stock Exchange leverages over 5%, signaling continued recovery
File photo shows the interior of Borsa İstanbul headquarters, Türkiye's stock exchange, with multiple digital screens displaying market data and branding in Istanbul, Türkiye. (AA Photo)
Borsa Istanbul continues its recovery on Tuesday, with the benchmark BIST 100 index climbing 5.29% to 9,793.43 points by midday, following last week’s steep losses of over 16%.
While the total trading volume reached ₺84.6 billion ($2.22 billion), the banking index rose by 6.81%, and the holding index gained 4.33%. All sector indices posted gains, with trade stocks leading the way with an 8.11% increase.
The index opened the session with a 1.76% gain, reaching 9,462.96 points.
On Monday, Borsa Istanbul followed a buy-weighted trend domestically, with the BIST 100 index closing 2.82% higher at 9,299.36 points, with a daily transaction volume of $183 billion ($4.82 billion).
As of 10:30 a.m. local time (0730 GMT), exchange rates stood at ₺37.9885 to the U.S. dollar, 40.9790 to the euro, and 49.0385 to the British pound.
Finance Minister Simsek to hold call with foreign investors
As one of the major developments that investors will track, Türkiye’s Treasury and Finance Minister Mehmet Simsek will hold a teleconference with foreign investors, along with Turkish central bank governor Fatih Karahan. The teleconference, scheduled for 1:00 p.m. GMT on Tuesday, comes in response to a significant downturn in Türkiye’s financial markets since March 19.
Minister Simsek is expected to provide updates on efforts to stabilize the markets, including new measures by the central bank to tackle inflation.
Temporary rule eases capital strain on Turkish banks
Separately, Türkiye’s Banking Regulation and Supervision Agency (BRSA) introduced a temporary regulation to ease capital requirements for publicly listed banks.
Under the new rule, shares repurchased after March 17, 2025, will not be deducted from banks’ core capital until the end of the year and will be excluded from credit and market risk calculations in capital adequacy assessments. This move aims to reduce pressure on capital adequacy ratios, enhance financial stability, and give banks greater flexibility in managing their balance sheets.
The regulation is also expected to positively influence bank valuations and share performance, after the banking sector led Borsa Istanbul’s losses last week, shedding over 16%.
