The selling pressure, which was effective on the third trading day of the week at Borsa Istanbul, accelerated further in the later hours of the day. While the BIST 100 index started the day with a 0.17 percent decrease at 13,868.17 points, the index-related circuit breaker system was activated as the losses exceeded 6 percent during the day. Value losses were observed in many sectors, especially banking and holding stocks. So why did the stock market fall, why are the stocks falling and why was the circuit breaker implemented in Borsa Istanbul?
WHY DID THE STOCK MARKET FALL?
It is difficult to explain the recent decline in Borsa Istanbul with a single development. While the negative outlook in global markets has put pressure on BIST 100 in recent days, the increase in concerns about investment funds in Türkiye on September 16 caused sales to accelerate even more.
Featured headlines are as follows:
Increasing liquidity concerns in the fund market
Default in refund payments in some funds of Pusula Portföy
Acceleration of cut-loss sales as BIST 100 fell below 14,000 points
High oil prices
The rise in US bond yields
Uncertainty before the Fed’s interest rate decision
HARD LOSSES
In the statement made by Borsa Istanbul after the decreases in the BIST 100 index exceeded 6 percent, “As of 16:04:32, the index-related circuit breaker was triggered and transactions were temporarily stopped in all transaction lines in the Equity Market, in contracts based on Stock and Share Indices traded in the Futures and Options Market, and in the Debt Instruments Market Equity Repo Market. Session flows will continue from where they left off as of the EBDK end time.” expressions were used.
WHY WAS CIRCUIT BREAKER APPLIED IN BORSA ISTANBUL?
After the decline in the BIST 100 index in Borsa Istanbul exceeded 6 percent, the index-related circuit breaker system was activated. In the statement made by Borsa Istanbul, it was stated that the circuit breaker was triggered as of 16.04.32 and transactions in the Equity Market, contracts based on shares and share indices in VIOP and the Debt Securities Market Equity Repo Market were temporarily suspended.
According to the official market operation information of Borsa Istanbul, the Index Linked Circuit Breaker System (EBDKS) may be activated if the BIST 100 index declines by 6 percent or more during the day compared to the previous closing.
