Things are not going well in the stock market, which the previous economic management directed to prevent individual investors from going to foreign currency.
Falling company profitability, PMI data below the threshold value, inflation that did not fall, and the geopolitical problems that started with Israel’s occupation of Gaza in October 2023, and the latest addition of this country’s conflict with Iran, caused great losses in Borsa Istanbul (BIST). The Middle East stock markets were also shaken last night when Iran launched a missile attack on Israel. President Tayyip Erdoğan’s statement that “Israel’s next target is Türkiye” affected the extent of the tension. It was noteworthy that even Israel’s Tel Aviv stock exchange fell by 1.6 percent, while the BIST 100 index lost 7.2 percent of its value in the last two days. Dollar/TL started to rise and tested 34.33 yesterday.
Evaluating this decline, financial expert Ali Ağaoğlu said, “The impact of the Japanese Yen wave in August has not ended on our stock market. You are a country in the heart of the Middle East and the policy you follow is not clear. We don’t have a proper story right now. The only possible story is success in inflation, and the way this can be achieved is through public savings. But it is not done,” he said.
THERE ARE 35 MILLION INVESTORS
Stating that Turkey’s economic conjuncture does not provide a favorable environment for the stock market, Prof. Dr. Hayri Kozanoğlu also commented on the latest developments as follows: “High interest rates increase the interest costs of companies. When the slowdown in demand negatively affects production, the turnover of listed companies will be negatively affected. In such a period, the hope of the stock market was foreign fund inflows. They also sold in three of the last four weeks. When Israel’s increasing aggression in the region was added to these, the BIST index reacted harshly. Erdogan’s statement that Israel has its eyes on Turkey also increased the uneasiness. There are also vultures who take advantage of this environment and will provoke a further decline in the index and use this as a buying opportunity.”
Stating that individual investors were left alone, Ali Aydemir, President of the Stock Exchange Experts Association, made the following assessment: “The Egyptian stock market is not falling, the Israeli and Iranian stock markets have fallen to a limited extent. What is happening to Turkey that this decline is happening? Why does the economic management remain silent while 35 million investors, including funds, suffer losses? “There is no reassuring statement made for the market?”
Source: www.cumhuriyet.com.tr
