Is the stock market out of breath?

Vote coming after
The sell-off trend that has dominated stock markets in recent days following the rally has raised concerns that the Istanbul Stock Exchange is “out of breath.” The BIST 100 index, which broke the performance record with an increase of 196.5 percent in 2022, entered the electoral atmosphere with the entry of 2023 and lost 11.2 percent in the five months spanning from 1 January to May 31. The index, which began a very serious rebound with the disappearance of uncertainty after the elections and the change in economic policies with the new economic team, registered strong sales this week. The index, which started June with 4,928 points and broke the all-time record with 8,403 points at the beginning of the week, ended the week with a loss of 4.3 percent. These losses, which came after several months of rapid increases, raised concerns that it may have entered a sales trend similar to the one before the presidential election, as the March 2024 local elections approach. However , experts call the recent sales “profit-taking in an ever-growing stock market.” It is stated that the moderate climate will continue until the local elections or as long as there is no real interest rate.

A DECISION OF INTEREST IS EXPECTED

The Central Bank’s interest rate decision on September 21 appears to be one of the most important points on the agenda in terms of the direction of the stock market. If the Central Bank continues to raise interest rates above market expectations, the index decline is expected to continue a little further. According to experts, who claim that there is no factor on the agenda that can completely reverse the current situation, it would be beneficial for short-term investors to be cautious. Although the inflationary environment continues to help maintain the trend of the index, short-term fluctuations can harm small investors who flock to the stock market. The BIST 100 index may experience more volatile sessions for a while.