Türkiye’s stock exchange sees modest growth—here are top-performing sectors in January
A trader walks in the trade floor of the Borsa Istanbul on May 22, 2018 (AFP Photo)
Türkiye’s stock exchange Borsa Istanbul’s benchmark index, BIST 100, which closed last year at 9,830 points, ended January at 10,004, with the communication sector posting the highest returns at 16.45%.
While the BIST 100 index gained 1.77% in January, it lagged behind other investment instruments, including Turkish lira deposits and money market funds, which approached a 4% return, and gold, which surged by nearly 8%. Considering the expected monthly inflation rate of around 4%, the index appears to have recorded a real loss.
Top-performing sectors in Türkiye’s stock exchange
The sectors that performed well in January were primarily in the services industry, as follows:
- Communication: +16.45%
- Transportation: +9.88%
- Technology: +9.24%
- Sports: +7.64%
- Banking: +2.62%
Meanwhile, the sectors that saw the most significant losses were:
- Investment Trusts: -8.57%
- Brokerage Firms: -7.23%
- Food: -6.03%
- Textile: -5.36%
- Primary Metal: -5.22%
Expectations of a credit rating upgrade from at least one of the big three credit agencies in January were not met, as Moody’s and Fitch maintained their ratings in January.
Despite an interest rate cut from the Central Bank of the Republic of Türkiye (CBRT) of 250 basis points, the tight monetary policy remains in place as the policy rate stands at 45%. While market expectations for 2024 corporate earnings are not particularly strong, these factors continue to influence equity markets.
The BIST 100 tested the 10,150 level four times in January but failed to break through. The 10,150-10,250 range remains the first resistance zone, while the index has managed to hold above 9,960 in the last nine trading days.
The 50-day moving average stands at 9,915, marking the 9,960-9,915 range as the first support level.
