Turkish Stock Exchange Surges at Monday's Open as Political Uncertainty Subsides

5/30/2023 3:09:16 AM

(MENAFN) Türkiye's benchmark stock exchange witnessed a remarkable surge on Monday, closing at 4,768.56 points, reflecting an impressive increase of 4.1 percent compared to the previous day's close. The Borsa Istanbul's BIST 100 index started the week at 4,696.17 points and gained 187.89 points, demonstrating a strong recovery.

The political uncertainty that gripped the country throughout May, causing significant turbulence in the markets, came to an end on Sunday night with the reelection of President Recep Tayyip Erdogan. The first stage of the election process on May 14 did not yield a candidate who secured the required 50 percent of the votes. However, following Erdogan's victory, Borsa Istanbul experienced a substantial rebound.

Throughout Monday's trading session, the BIST 100 index experienced fluctuations, with its lowest value recorded at 4,622.26 points and its daily high reaching 4,799.98 points. This volatility reflects the heightened market activity and investor interest in response to the political developments and their impact on the economy.

By market close, the total market value of the BIST 100 reached approximately 3.97 trillion Turkish liras (USD199 billion), accompanied by a robust daily trading volume of 71 billion Turkish liras (USD3.5 billion). Notably, 99 stocks on the index witnessed gains, while only one stock declined compared to the previous day's close, further highlighting the overall positive sentiment among investors.

Commodity markets also played a role in shaping the financial landscape. The price of an ounce of gold remained stable at USD1,964.65, while Brent crude oil was valued at around USD76.60 per barrel as of 6.30 p.m. local time (1530GMT). These prices, coupled with the market recovery, contribute to the broader economic outlook and potential investment opportunities.

Furthermore, the currency exchange rates demonstrated stability during this period. The US dollar/Turkish lira exchange rate stood at 20.0990, the euro/lira exchange rate at 21.6050, and the British pound was traded at 24.8270 Turkish liras. These exchange rates play a crucial role in the country's economic dynamics, affecting trade and investment decisions.

The significant surge in the Turkish stock exchange following the resolution of political uncertainty showcases renewed market confidence. The reelection of President Erdogan has brought about a sense of stability, prompting investors to regain their optimism and participate actively in the market. The overall positive performance of the BIST 100 index, coupled with steady commodity prices and currency exchange rates, sets the stage for a potentially favorable economic environment in Turkey.

MENAFN30052023000045014228ID1106349942

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.