Borsa Istanbul faces sharp decline amid economic shifts

Borsa Istanbul has recently experienced a substantial downturn, with the BIST 100 index closing the day at a 3.87% loss. This decline follows a year marked by a record number of investors and public offerings. Economist Tuğba Özay attributes the stock market drop mainly to the rise in deposit interest rates. During months of high inflation and low-interest rates, the stock market had been a primary investment tool. However, recent interest rate hikes have shifted investor focus from stocks to deposit interests.

Allegations of Market Manipulation

Amid the downturn, social media rumors suggest market manipulation or "operations" within Borsa Istanbul. Discussions on platforms like the X platform and Ekşi Sözlük indicate widespread concern. Habertürk journalist Rahim Ak suggested that sales by major investors in Gübretaş stocks led to market instability. Today, Gübretaş shares fell by 10%, totaling a 46.7% loss since December 15. These developments have rattled the markets, raising concerns among investors.

Record-Breaking Year for Borsa Istanbul

Despite the recent setbacks, Borsa Istanbul broke records this year with five million new investors, bringing the total count to 8.5 million. However, many of these investors are noted to have limited financial literacy. The year also saw a record with 54 companies going public, raising a total of 79.3 billion liras, according to SPK Chairman İbrahim Ömer Gönül. This surge in public offerings has significantly influenced the market dynamics.

Market Outlook Amidst Inflation Accounting

The introduction of inflation accounting is expected to provide a more accurate picture of companies' profitability. This accounting practice, aimed at adjusting financial statements for inflation, will impact tax liabilities and the financial reality of companies. The BIST 100 index, while reaching record levels in the Turkish lira, remains far behind in dollar terms, highlighting the complexities of the market and the cautious stance of foreign investors awaiting the outcomes of local elections and Fed policies.