BIST 100 index in Borsa Istanbul broke a record by seeing 15,021.82 points due to the rise in banking stocks and the effect of widespread purchases.
Borsa Istanbul’s BIST 100 index, which crowned April with records, continues to break new records in May.
Following US President Donald Trump’s decision to briefly suspend the Freedom Project, which is described as an aid initiative for the passage of ships stranded in the Strait of Hormuz, he declared that great progress had been made towards reaching a final agreement with Iran, which revived the risk appetite in the markets.
Strong company balance sheets also gave additional impetus to the markets supported by technology stocks.
Reaction purchases from banking stocks also had an impact on the rise in the stock market.
BIST 100 index reached its all-time high today, rising 3.6 percent compared to the previous close and reaching 15,021.82 points.
The index later stabilized above 14,970 points.
While all sector indices increased, the biggest gainer was sports with 5.1 percent. The sports index was followed by the banking index with 4.6 percent. It is noteworthy that the banking index, which has been in a downward trend for two weeks, has an upward trend this week.
While Türkiye’s reassuring stance in its geography increased the demand for Turkish lira assets from foreign investors, the country’s borrowing costs also decreased. Türkiye’s 5-year credit risk premium (CDS) decreased to 244 basis points this month, after completing last month at 249 basis points.
Last month, non-residents purchased a total of 365 million dollars of bonds and 1 billion 120 million dollars of stocks. The stock stock of non-residents was recorded as 43 billion 911.6 million dollars, and the government securities stock was recorded as 15 billion 443.9 million dollars.
While the shares of ASELSAN, which continues to play a leading role in the development and transformation of defense technology in Türkiye, rose over 4.5 percent, the company’s market value is over 2 trillion liras.
– The market prices peace
Assoc. Prof., Bursa Uludağ University, Faculty of Economics and Administrative Sciences, Department of Economics. Dr. In her assessment to the AA correspondent, Filiz Eryılmaz stated that the markets are currently pricing peace.
Therefore, Eryılmaz stated that there was a rally in the stock market and that a technology rally was also observed.
Stating that the artificial intelligence rally has also come to the fore, Eryılmaz stated that very important companies such as AMD in the USA have announced very good balance sheets and that this has positive effects, and added: “If the news about peace continues, the BIST 100 index may reach 15,500 levels.” he said.
Eryılmaz also drew attention to the rise in bank shares, which have been under pressure in the stock market for a while, and noted that if news of peace comes, a movement led by banks may come to the agenda.
Founder of Pariterium Consulting company, Dr. İsmet Demirkol also stated that increasing expectations that a final agreement could be reached between the USA and Iran increased the risk appetite in domestic markets.
Pointing out that US President Trump continued his conciliatory attitude in the post-ceasefire period, Demirkol said, “Following this, the increase in shipments in the Strait of Hormuz and, above all, the efforts of the USA to end the war before the visit to China, brought rises in the Stock Exchange Istanbul.” he said.
