BIST 100 Index Drops by 253 Points Amid Global Market Divergence and Powell’s Cautious Remarks
Borsa Istanbul’s BIST 100 index ended the day with a significant decline, closing at 9,668.10 points, down by 2.55%. The index fell by 253.30 points from the previous close, with a total trading volume of ₺77.9 billion. This downturn was led by losses across various sectors, notably banking and holding companies.
Borsa Istanbul Sectoral Performance:
- Banking Sector:
The banking index recorded a 2.90% drop, reflecting concerns over global economic conditions. - Holding Companies:
The holding index also fell sharply, declining by 3.13%. - Mining Sector:
The most significant loss was in the mining sector, which plunged by 3.49%, leading the day’s declines.
Analysts’ Insights about Borsa Istanbul Performance:
According to analysts, while global equity markets showed a positive trend following dovish comments from Federal Reserve Chair Jerome Powell, Turkiye’s domestic market diverged negatively. Powell’s remarks at the Jackson Hole Economic Policy Symposium suggested that the time for policy adjustments was approaching, but the timing and pace of interest rate cuts would depend on incoming data, the evolving outlook, and risk balance.
Global Influence and Local Divergence:
- Powell’s Remarks:
Powell’s speech emphasized caution in adjusting monetary policy, which reassured global markets but did not prevent Borsa Istanbul from sliding. - Market Divergence:
Despite the Fed’s cautious optimism, Turkiye’s markets followed a different trajectory, influenced by local economic concerns.
Market Outlook
As the new week approaches, analysts are closely monitoring several key data releases and events that could impact Borsa Istanbul:
- Domestic Data:
- Real sector confidence index
- Capacity utilization rate
- Central Bank of Turkiye (CBRT) Monetary Policy Committee (MPC) meeting summary
- Foreign trade balance
- International Data:
- Japan: Consumer confidence index and Tokyo Consumer Price Index (CPI)
- Germany: Growth figures and CPI
- Eurozone: Consumer confidence index and CPI
- USA: Durable goods orders and growth figures
Technical Analysis of BIST 100 Index:
From a technical perspective, analysts highlight key support and resistance levels for the BIST 100 index:
- Support Levels:
The index has support at 9,600 and 9,500 points, levels that traders are watching closely. - Resistance Levels:
Resistance is expected around 9,800 and 9,900 points, where upward momentum could face challenges.
The day’s trading at Borsa Istanbul underscores the volatility and sensitivity of the market to both domestic and global economic signals. As investors digest Powell’s cautious tone and upcoming economic data, the BIST 100 index will likely remain in focus, with critical support and resistance levels determining its short-term trajectory.
Source: AA / Prepared by Irem Yildiz