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Losses on Türkiye's stock exchange mounted sharply on Wednesday, with the benchmark BIST 100 index falling 5% during the session.
The index opened 0.2% lower at 13,868 points before sliding to an intraday low of 13,095 as concerns over the fund market fueled the sell-off. Stop-loss orders below 14,000 points added to the pressure, while a circuit breaker kicked in after the index's decline reached 5%.
More than 350 shares also triggered circuit breakers during the session, according to disclosures on the Public Disclosure Platform.
All sectoral indices were in the red, with banking and industrial stocks also slumping more than 5% before paring some of their losses. In the BIST 100, only three shares gained during the morning session, while the rest posted severe losses.
The market rout follows troubles at Pusula Portfoy, a portfolio management company that announced late Tuesday that some of its investment funds were unable to make payments on time to investors seeking to withdraw their money, resulting in defaults.
Data from financial analysis platform Fintables showed that investors had withdrawn about ₺129 billion ($2.7 billion) from Pusula funds since the end of August.
The bank run follows the Capital Markets Board's (CMB) move to limit funds with concentrated positions in relatively illiquid stocks, putting pressure on Pusula to meet withdrawal demands.
The company's chairman, Muhammet Yariz, was arrested after appearing before prosecutors in Mugla province as part of an investigation into the company. The investigation unfolded as Pusula Finans Holding moved toward a planned transfer to Tera Group, another major fund manager.
Pusula disclosed Sept. 9 and 10 that talks had begun over the transfer of shares in Pusula Finans Holding and its affiliated companies to Tera Group.
In a Sept. 12 disclosure, the company said the transaction remained in progress and that recent developments had not changed Tera Group's strategic assessment of the planned acquisition. Tera has also said the developments did not alter its strategic and financial assessment of the transaction.
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