Istanbul’s BIST 100 index closed lower on , continuing a period of volatility for Turkish equities. The benchmark index declined by 67.18 points during the session, with total transaction volume reaching 166 billion Turkish lira. The banking sector experienced a decrease of 0.41%, while the holding sector saw a more pronounced decline of 1.56%.
Sector Performance and Market Drivers
Among sector indices, transportation emerged as the top performer, gaining 1.24%. Conversely, the holding and investment partnership sector experienced the largest losses. This divergence highlights a degree of selectivity within the Turkish stock market, with certain sectors proving more resilient than others.
Globally, market attention is focused on the sustainability of high valuations in the technology sector. Despite concerns, positive momentum persists in U.S. Markets, even as economic data suggests a more pronounced slowdown than previously anticipated. This dynamic reflects a complex interplay of factors influencing investor sentiment.
Domestically, the BIST 100 index faced broad-based selling pressure, resulting in a negative close. This suggests a prevailing cautious mood among investors, potentially driven by both domestic and international factors.
Looking Ahead: Key Economic Data and Technical Levels
Analysts anticipate a busy data calendar in the coming week, both domestically and internationally. Within Turkey, key releases include industrial production figures, the Central Bank of the Republic of Turkey (TCMB) Inflation Report, the current account balance, and the TCMB’s Survey of Market Participants Expectations. Globally, investors will be closely watching U.S. Non-farm payrolls and unemployment rate data, Chinese inflation figures, and Eurozone growth data. These releases are expected to significantly influence market direction.
From a technical perspective, analysts identify 13,400 and 13,300 points as key support levels for the BIST 100 index. Resistance is seen at 13,700 and 13,800 points. These levels will be crucial in determining the index’s near-term trajectory. A break below the support levels could signal further downside, while a move above the resistance levels could indicate a potential recovery.
Recent Market Trends and Valuation
The recent decline in the BIST 100 follows a broader trend of volatility in the Turkish stock market, influenced by economic, geopolitical, and sector-specific factors. High inflation and interest rates, coupled with political uncertainties, have weighed on investor confidence. According to data from SimplyWall.st, as of , the Turkish market has a market capitalization of ₺20.2 trillion, with revenue of ₺16.6 trillion and earnings of ₺943.7 billion. The Price-to-Earnings (P/E) ratio stands at 20.8x, while the absolute P/E ratio is 21.4x, and the Price-to-Sales (P/S) ratio is 1.2x.
This valuation data provides a snapshot of the market’s current standing. Comparing this to previous valuations, the market capitalization has increased from ₺17.6 trillion on , and significantly from ₺6.3 trillion on . The P/E ratio has fluctuated over the past year, indicating changing investor sentiment and earnings expectations.
October 2025 Market Correction
The current market conditions echo a significant downturn experienced on , when the BIST 100 index fell by 2.02% to close at 10,925 points. This decline was attributed to growing investor anxiety surrounding inflation figures and economic challenges. The sell-off was broad-based, with 386 issues declining against only 200 advancing, indicating a widespread shift in investor sentiment.
During that October correction, sectors such as Leasing & Factoring, Wood, Paper & Printing, and Banking experienced the most substantial losses. Specifically, Destek Finans Faktoring AS saw its shares plummet by 10.00%, while Haci Omer Sabanci Holding AS declined by 5.95%, and Emlak Konut Gayrimenkul Yatirim Ortakligi AS fell by 5.75%. These declines underscored the vulnerability of certain sectors to prevailing economic headwinds.
Challenges and Outlook
The Turkish stock market continues to navigate a complex landscape characterized by high inflation, political uncertainty, and global economic headwinds. The recent decline in the BIST 100 index reflects these challenges, and investors are likely to remain cautious in the near term. The upcoming economic data releases will be critical in shaping market expectations and determining the index’s future direction. The interplay between domestic policy decisions, global economic trends, and investor sentiment will ultimately dictate the performance of Turkish equities.
