BIST 100 ends the day at 9,982.28 points as banking gains are offset by losses in the communications sector.
Borsa Istanbul Ends the Day with a Decline on August 20
Borsa Istanbul’s BIST 100 index closed the trading day with a 0.72% drop, finishing at 9,982.28 points. This marks a decrease of 71.92 points from the previous close. The total trading volume for the day reached 94.1 billion Turkish lira.
Sector Performances: Mining Shines, Communications Falter
The day’s sector performance was mixed:
- Banking Sector: The banking index gained 0.18%, showing resilience amidst the broader market decline.
- Holding Sector: The holding index fell by 0.28%.
- Top Gainer: The mining sector led the gains with a remarkable 6.76% increase.
- Top Loser: The communications sector suffered the most, declining by 3.97%.
Central Bank’s Steady Stance on Interest Rates
In a related development, the Central Bank of the Republic of Turkey (CBRT) announced that it would keep the policy interest rate, the one-week repo rate, unchanged at 50%. This decision reflects the bank’s commitment to maintaining a tight monetary policy until there is a significant and lasting decline in inflationary pressures.
The CBRT emphasized:
- Monetary Policy: The strict stance will continue until monthly inflation shows a marked and permanent decrease.
- Potential Adjustments: If inflation worsens, the bank is prepared to further tighten its policy.
Analysts’ Insights: Global Factors in Focus
Market analysts highlighted that global equity markets exhibited mixed behavior ahead of the Jackson Hole Economic Policy Symposium, set to begin on Thursday. They noted that:
- Upcoming Events: The Federal Reserve’s Federal Open Market Committee (FOMC) meeting minutes and Japan’s foreign trade balance are key data points to watch.
- Technical Levels: On the technical front, support levels for the BIST 100 index are at 9,850 and 9,750 points, while resistance levels are seen at 10,100 and 10,200 points.
Market Outlook: What’s Next for Borsa Istanbul?
Looking ahead, analysts expect a relatively calm day in terms of domestic data. However, they advise keeping an eye on international developments, particularly those stemming from the Fed and global trade dynamics.
Source: AA / Prepared by Irem Yildiz