Borsa Istanbul Stock Exchange has been profitable 8 times in the last 10 years

The performance of the BIST 100 index in Borsa Istanbul, recording increases 8 times in the month of April over the past 10 years, is increasing the appetite of investors taking positions in the direction of growth, referred to as “bulls.”

According to data compiled by AA, when the performance of the BIST 100 index in the month of April for the past 10 years is examined, the average of the 8 months with increases is calculated as 5.31 percent, while the average of the 2 months with decreases is 6.66 percent.

The BIST 100 index showed its best April performance in the last 10 years with a 12.79 percent gain in 2020, while it demonstrated its worst performance with a 9.26 percent decline in 2018.

Looking at the performance of the main indices in the month of April over the past 10 years, it is observed that the industrial index gained value 8 times in line with the BIST 100, while the service index increased 7 times, the goods index increased 6 times, and the technology index increased 5 times.

During these periods, the industrial, service, and technology indices exhibited their best performances in line with the BIST 100 index in 2020, while the goods index recorded its strongest increase in 2022.

In April 2020, the industrial index stood out with a 19.96 percent gain, the technology index with a 19.73 percent gain, and the service index with a 14.68 percent gain over the BIST 100 index, while the goods index achieved its strongest increase in 2022 with a 13.10 percent gain.

The main indices recorded their worst performances in 2018, similar to the BIST 100 index. The goods index’s decline of 10.62 percent and the technology index’s decline of 15.97 percent stood out as more significant than the decline in the BIST 100 index. During this period, the industrial index lost 5.64 percent and the service index lost 9.20 percent.

The Season of Bulls in April When we take a closer look at the last 5 years’ April months in Borsa Istanbul, it is seen that it pleased investors 4 times. During these periods, it is noteworthy that the transportation sector especially achieved an average monthly increase of 16.2 percent.

Analysts reminded that the banking sector, which has a high weight on the index, also pleased its investors with 4 times of value appreciation during the same periods with an average increase of 8.08 percent.

During the mentioned period, it is observed that the BIST 100 had negative closing only once in April 2023 with a decline of 4.05 percent, while the transportation index had a decline of 3.53 percent in 2021, and the banking index had a decline of 7.33 percent in 2023.

Analysts stated that the expectations for the first-quarter financial statements to be disclosed, as well as the activity starting to increase due to the warming weather, and the wedding and tourism season starting in this period directly or indirectly affected the share prices of many companies.

Stating that April months are generally evaluated as “the time of bulls” in the stock market for the aforementioned reasons, analysts said that this situation can be understood when looking at the performances of the BIST 100 index in April periods.

While analysts warn that each period has its own conjuncture structure and may vary, they reminded that this year started with an April month where election uncertainty disappeared and companies will disclose their financial statements with the inflation accounting method.

source: prepared by Melisa Beğiç

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