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Turkish Lira Volatility: First Interest Rate Hike Causes Market Surge

Yesterday, despite positive movement in banking stocks,‍ teh Borsa Istanbul ⁢followed⁣ a negative course with sharp sales in Aselsan, a stock with‌ high weighting in the index. The BIST ​100 index⁣ closed the day down 0.61 percent at 12,728.18 points.

Today, at​ the opening, the BIST 100 index rose 43.28 points and 0.34 percent to 12,771.45 points compared to the previous close.

Domestically, the BIST 100 index completed the ⁣first half of the​ day​ with a positive trend, in parallel with​ global markets, ahead of ​the Central Bank of ⁢the Republic of Turkey ‍(TCMB) interest‍ rate decision.

Post-interest rate outlook ​changed

The TCMB’s interest rate decision, announced at 2:00 ​PM, was in line with expectations for​ a cut, but the index saw increased volatility when a ‍100 basis point cut came‌ in, against market expectations of a 150 ​basis point reduction.

With the interest rate cut falling short of expectations, the index⁣ experienced a decline of ⁣approximately 140 points around 2:00 PM.The BIST 100 index fell from 12,808 to 12,684 points,then attempted to⁤ stabilize at‌ the 12,728 level.

The decline in ‍the ​banking index approached 3 percent, while the ⁣increase in industrial stocks‌ exceeded 1 percent.

Afterward, renewed buying power ‌in the market ⁤pushed the close ‌to a record level.

Record close

The BIST 100 index on the Borsa Istanbul⁤ closed the day ​up ‍0.97 percent, gaining 123.31 points to⁣ 12,851.49 points, reaching⁣ a new‍ record high.

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