EBRU USTA/BLOOMBERG HT MONEY AND CAPITAL MARKETS MANAGER
While pre-election selling pressure increased in the stock market, BIST 100 Index declined to November levels.
The index, which saw the highest level with 5,704 points on the first day of the year this year, lost 8 percent last week and more than 20 percent since the beginning of the year.
Following the recession last week, the BIST 100 index in Borsa Istanbul, which followed a sales-weighted course this week, decreased by 2.42 percent from the previous closing yesterday. under While completing from 4 thousand 506.24 points, it fell below 4 thousand 400 points with the effect of increasing sales after the opening. Thus, the BIST 100 Index has regressed to the levels of November last year.
Although Borsa Istanbul started the day with reaction purchases both yesterday and today, it seems that this reaction was limited. From a technical point of view, the outlook, which deteriorated especially after the break of 5000 points, continues to display a negative picture with the downward passing of 4,700 and 4,500.
On the other hand, while the balance sheet period continues for the first quarter, although there are divergences in companies in this quarter on the basis of sectors and companies, weak results on a quarterly basis in general attract attention.
While there are 7 trading days to the election, the pre-election waiting period and the investors’ profit realization after the record rises last year and the preference of alternative investment instruments such as Currency Protected Deposits (KKM) in the recessionary stock market stand out as the effective factors in the decline.
BIST 100 declined in 11 of 18 weeks this year
Looking at the index, which saw its highest level on the first day of this year, on a weekly basis since the beginning of the year, it is seen that 11 of the 18 weeks in total ended the week with a decline.
In addition to the 8 percent loss in the stock market last week and the 20 percent loss experienced since the beginning of the year, the low trading volume has reached a remarkable stage in the recent period, and despite the record breaking in the number of investors, the trading volume in the stock market declined significantly from its peak in December.
The stock market experienced the worst first quarter in 10 years after the pandemic. In the first quarter of this year, the BIST 100 Index declined by 12 percent to 4,830 points, recording the worst first-quarter performance since the pandemic.