Latest news with #BorsaIstanbul100Index
The National
24-03-2025
- Business
- The National
Turkey bans short selling and eases buyback rules amid market rout
Business Economy The Borsa Istanbul 100 Index shed more than 16 per cent last week after President Erdogan's main opposition leader was arrested
Yahoo
21-03-2025
- Business
- Yahoo
Turkey Braces for More Unrest Amid Call for Nationwide Protests
(Bloomberg) -- Turkey is preparing for its third evening of protests, risking an escalation after Turkey's main opposition party called for nationwide demonstrations over the detention of President Recep Tayyip Erdogan's most prominent rival. New York Subway Ditches MetroCard After 32 Years for Tap-And-Go Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs Amtrak CEO Departs Amid Threats of a Transit Funding Pullback NYC Plans for Flood Protection Without Federal Funds 'They're asking me if I'm making a call to be on the streets? Yes, yes, yes,' Republican People's Party, or CHP, chairman Ozgur Ozel told demonstrators in Istanbul on Thursday evening, who gathered for a second day in reaction to the detention of Istanbul's mayor Ekrem Imamoglu. Thousands of people took to streets on Thursday evening, challenging a ban in place since Wednesday, with authorities seeking to preempt the risk of demonstrations escalating. Dozens were detained over social media posts criticizing Imamoglu's detention. Markets have remained volatile, with the Turkish lira on course for its steepest weekly drop in nearly two years. Turkey's central bank announced a surprise increase to one of its key interest rates to stem the currency's decline amid mounting political tensions — the lira was down 0.5% at 38 per dollar Friday. The benchmark Borsa Istanbul 100 Index slumped 7%, triggering circuit breakers and adding to a weekly retreat that's erased about $30 billion from the value of the Turkish equity market. The Turkish currency and stocks are the world's worst performers this week. The Istanbul governor's office on Friday repeated its warning that any gatherings or press conferences through March 23 are forbidden, while governors of capital Ankara and Izmir also imposed city-wide bans. Friday evening will put the order to the test, as Imamoglu's CHP is organizing rallies nationwide. Erdogan, who has control and influence across almost all levers of the state, has sought to distance himself from the latest events. On Thursday evening, he said the recent developments constituted internal matters for the opposition and that they should not be seen as national issues. Imamoglu is Erdogan's strongest rival, having won over the president's handpicked contenders in two consecutive local elections. Erdogan's political ascent began as mayor of the same city in 1990s and he saw the losses as personal defeats. The main opposition party is set to hold a primary on Sunday to formally elect Imamoglu as its presidential contender. The police can keep the mayor under custody for four days following the detention before a judge formally hears the accusations and decides whether he should be formally arrested. --With assistance from Tugce Ozsoy. A New 'China Shock' Is Destroying Jobs Around the World Tesla's Gamble on MAGA Customers Won't Work How TD Became America's Most Convenient Bank for Money Launderers The Real Reason Trump Is Pushing 'Buy American' One Man's Crypto Windfall Is Funding a $1 Billion Space Station Dream ©2025 Bloomberg L.P.
Yahoo
21-03-2025
- Business
- Yahoo
Lira Set for Worst Weekly Drop Since 2023 Amid Turkey Turmoil
(Bloomberg) -- The Turkish lira is on course for the largest weekly drop in nearly two years after the detention of a key opposition politician rattled investors. New York Subway Ditches MetroCard After 32 Years for Tap-And-Go Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs Amtrak CEO Departs Amid Threats of a Transit Funding Pullback NYC Plans for Flood Protection Without Federal Funds The currency was trading 0.5% lower at 38 per dollar at 9:05 a.m. in Istanbul on Friday, extending its losses over the past five days to 3.7% — its worst performance since June 2023. The rout began on Wednesday after Turkish authorities detained Istanbul Mayor Ekrem Imamoglu, President Recep Tayyip Erdogan's most powerful rival. Lenders sold as much as $9 billion and the central bank delivered a shock interest-rate hike to defend the currency. The monetary authority's decision was aimed at containing outflows from lira deposits, Goldman Sachs Group Inc. economists Clemens Grafe and Basak Edizgil said in a report. Market Volatility Thursday's 200-basis-point hike to Turkey's overnight lending rate will allow policymakers to raise the average cost of funding they provide to commercial lenders and prevent a weaker lira from stoking inflation. The bank also said it would suspend lending at its lower, benchmark rate of one-week repo — which stands at 42.5% — for an unspecified period. TURKEY INSIGHT: Stealth Hike of 350 Bps Will Back Lira The monetary authority's decision brought relative stability to the offshore lira market, where the cost of borrowing in the Turkish currency eased to 54% on Friday morning after rising to 175% earlier in the week. Lira Rout Lures Hedge Funds as Favorite Trade Goes Negative The Borsa Istanbul 100 Index closed 0.5% lower on Thursday. A day earlier, stocks had slumped 8.7%, erasing about $10 billion from the market value of Turkish equities. The yield on lira-denominated, 10-year government bonds stands at 31.31%, 338 basis points higher on the week. A New 'China Shock' Is Destroying Jobs Around the World Tesla's Gamble on MAGA Customers Won't Work How TD Became America's Most Convenient Bank for Money Launderers The Real Reason Trump Is Pushing 'Buy American' One Man's Crypto Windfall Is Funding a $1 Billion Space Station Dream ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
20-03-2025
- Business
- Yahoo
Turkish Market Selloff Shows Signs of Easing After Turmoil
(Bloomberg) -- The selloff in Turkish assets eased as authorities announced steps to curb volatility after the detention of President Recep Tayyip Erdogan's main political rival sparked a market rout. Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style Amtrak CEO Departs Amid Threats of a Transit Funding Pullback New York Subway Ditches MetroCard After 32 Years for Tap-And-Go NYC Plans for Flood Protection Without Federal Funds The Scary Thing About the Wildfire That Was Stopped The Turkish currency pared declines to trade little changed at 37.8869 per dollar after the central bank said it would start lira-settled forward currency sales to avoid potential exchange-rate swings and balance liquidity in the market. The benchmark stocks gauge, meanwhile, was buoyed by a decision from the market regulator to ease share buyback rules. The Borsa Istanbul 100 Index traded up 1.2% as of 10:46 a.m. in Istanbul, following a slump that erased about $10 billion from the market value of Turkish equities on Wednesday. Investors are speculating that the political turmoil doesn't pose a risk — so far — to Erdogan's market-friendly economic policies, including tight monetary policy. Further selling pressure from foreign investors is 'likely to be limited,' Goldman Sachs economist Clemens Grafe wrote in a report. Read more on: Turkey Detains Erdogan's Top Rival, Triggering Market Meltdown Istanbul Mayor Ekrem Imamoglu, the most popular Turkish politician and a potential challenger to the Erdogan's rule, was taken into custody early Wednesday, sparking protests from members of opposition parties. The mayor's detention — on corruption charges he denies — highlights an increasingly aggressive campaign Erdogan is waging against critics to silence dissent. The crackdown was a stark reminder of the risks involved in investing in Turkey, where assets posted the biggest declines worldwide on the day of the detention. Authorities said as much as $9 billion were spent on Wednesday support the lira. 'The assessment of the political risk to markets likely will remain more elevated and hence it is also unlikely that these long positions will be rebuilt in a hurry,' Grafe said. Longer-dated government bonds gained, with the yield on 10-year government notes falling 121 basis points to 29.53%. So-called next-day offshore forward implied yields, fell to 56% from as high as 175% earlier. Gordon Bowers at Columbia Threadneedle Investment said he's still 'quite constructive' on lira investments. He predicts returns could be in the low double digits in the coming twelve months — assuming the central bank sticks with its real exchange rate appreciation strategy. 'But it's really about managing that left tail risk which is undeniably higher,' he said. (Updates with new market prices throughout, adds fresh quote) Tesla's Gamble on MAGA Customers Won't Work A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers The Real Reason Trump Is Pushing 'Buy American' The Future of Higher Ed Is in Austin ©2025 Bloomberg L.P. Sign in to access your portfolio
Japan Times
20-03-2025
- Business
- Japan Times
Turkey detains Erdogan's top rival, triggering market meltdown
Turkish authorities detained President Recep Tayyip Erdogan's top political rival on corruption charges, triggering a selloff in stocks and the lira. Istanbul Mayor Ekrem Imamoglu, the most popular Turkish politician who could one day challenge the president's rule, was taken into custody on Wednesday, sparking protests from members of opposition parties. The mayor's detention highlights an increasingly aggressive campaign that Erdogan is waging against critics to silence dissent. He also needs to broaden his support base in parliament to have a shot at running for office again after hitting the two-term constitutional limit. The probe against his most formidable challenger serves as a stark reminder of the risks involved in investing in Turkey, where assets posted the biggest declines worldwide. Authorities said as much as $9 billion were spent in less than a day to support the lira, which showed some signs of stabilizing as investors bet the risk of a reversal in economic policies remains limited. Erdogan has "always said that he respects the election process and his term limits. What has happened this week throws that into fundamental doubt,' said Richard Segal, a fixed-income analyst at Ambrosia Capital in London. "With that in mind, it is likely a repricing in progress, rather than a continuing deterioration of market sentiment and economic policies should remain orthodox.' Market mayhem Treasury and Finance Minister Mehmet Simsek, whose decision to join Erdogan's government two years ago boosted markets, stepped in to reassure investors, saying that the government's economic policy remain unchanged. "The economy program we have been implementing continues in a determined fashion,' he said on X. Istanbul Mayor Ekrem Imamoglu | REUTERS That did little to mitigate the slump in equities and government debt. The nation's stocks dropped so abruptly that they twice triggered a trading halt, with the benchmark Borsa Istanbul 100 Index closing down 8.7% in Istanbul — the steepest drop in four years. In New York, the iShares MSCI Turkey Exchange Traded Fund tumbled 12%. The yield on lira denominated, 10-year government bonds surged 255 basis points to 30.74%. The lira weakened as much as 11% before trimming its loss to 3.2% at 37.8952 per dollar as of 6:10 p.m. in Istanbul. The currency's relative stability was underpinned by an intervention by the nation's banks, which sold between $8 billion to $9 billion on Wednesday, a central bank official with direct knowledge of the matter told Bloomberg. The bank is "closely monitoring developments in foreign exchange markets and intervening against volatility when it deems necessary,' the official said, asking not to be identified, citing the sensitivity of the matter. The severity of the latest political crisis means the market downturn may last longer than many anticipate, according to Bernd Berg, a London-based strategist at In Touch Capital. "I think the news out of Turkey is shocking and will put Turkish assets under heavy selling pressure for months to come unless President Erdogan reverses course,' Berg said. "For me it's deja-vu, It reminds me of similar periods over the last decade when negative domestic news was the trigger for a sustained and longer-lasting selloff.' Imamoglu's diploma A day before Wednesday's probe burst into public, authorities decided to revoke Imamoglu's university diploma, citing irregularities. If finalized, that alone would bar the mayor from challenging Erdogan in future elections — having a university degree is required to run for president. Turkish markets buckled on Wednesday after Imamoglu's detention stoked concern that political upheaval risks undermining recent investor-friendly economic policies. | bloomberg A conviction on the current charges including bribery and corruption would also disqualify him from holding national office. Imamoglu, who already beat Erdogan's handpicked candidates in municipal elections twice in the last six years, said the police force was being weaponized to bring his political career to an early end. He was set to be named by the main opposition party CHP on Sunday as their presidential candidate. Turkish authorities banned any protests, rallies and press conferences for four days to preempt mass rallies. National TV outlets showed footage of a group of students protesting in front of Istanbul University, where Imamoglu obtained his diploma. Lawmakers of the opposition party also protested his detention in the Turkish general assembly, bringing parliamentary sessions to an end for the day. The probe against Imamoglu follows the arrest in January of Umit Ozdag, the leader of a small nationalist party and a vocal critic of Erdogan. Investigations have also ensnared national politicians, journalists, and even a celebrity agent earlier this year. Former Kurdish leader Selahattin Demirtas has been imprisoned for years, following his decision to challenge Erdogan in presidential elections. The next election is officially set for 2028. For a chance at extending more than two decades in power — as prime minister and then president — Erdogan would need to secure enough parliamentary support to change the constitution or call for a snap election. He has repeatedly said he wouldn't be seeking another term, but his political allies including members of his ruling AK Party say Erdogan should stay in power.
