BIST 100 Index falls to 9,647.99 by midday; banking sector gains while communication sector sees sharp decline.
Borsa Istanbul’s BIST 100 index experienced a slight decline of 0.20% by the midday session, dropping to 9,647.99 points. This represents a decrease of 19.54 points from the previous close, with a total trading volume reaching ₺32.8 billion.
Sector Performance
- Banking Sector: The banking index emerged as a positive performer, gaining 1.07% in the morning session.
- Holding Sector: In contrast, the holding index faced a 0.67% decline.
- Top Performers: The sports sector led the gains with a 1.66% increase.
- Biggest Decliners: The communication sector was the hardest hit, falling by 2.79%.
Global Market Sentiment
Global markets kicked off the week with caution, as investors are closely monitoring a busy macroeconomic data schedule. The recent comments from U.S. Federal Reserve Chairman Jerome Powell at the Jackson Hole Economic Policy Symposium added to the market’s cautious tone. Powell signaled that the time to lower historically high policy rates might be approaching.
Powell stated, “The direction is clear; the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.” He also expressed increased confidence that inflation is on a sustainable path towards the 2% target.
August 2024 Market Expectations
In the money markets, there’s a growing consensus that the Fed will likely cut rates by 25 basis points next month, with a possibility of a 50 basis point reduction also on the table.
Afternoon Outlook
Analysts suggest that the domestic data agenda will remain calm in the afternoon. However, attention will be focused on U.S. data releases, including durable goods orders and the Dallas Fed manufacturing index. Technically, BIST 100’s support levels are seen at 9,600 and 9,500 points, while resistance levels are at 9,750 and 9,900 points.
The cautious approach in global markets, combined with ongoing data monitoring, indicates a potential for further shifts in market sentiment as the day progresses. Investors are advised to keep a close eye on both local and international developments.
Source: Trthaber / Prepared by Irem / Yildiz