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Türkiye’s stock exchange, Borsa Istanbul, continued its record-breaking rally on Wednesday as the benchmark BIST 100 index surged by over 2.2% to a new all-time high of 13,410.12, expanding its gains since the start of 2026 to 20%, the best performance since 2001.
The index started the day with a 43.14-point, or 0.33%, increase at 13,150.12, after Tuesday’s close saw a 0.53% loss, ending the session at 13,106.99. The total transaction volume reached ₺195.1 billion ($4.49 billion).
Among the index constituents, 72 stocks rose, 24 declined, and 4 remained flat. On the most capitalized indices, Aselsan rose 1%, Kiler Holding edged up 9%, and Garanti added 2%.
All of the main sectoral indices were up, with financials leading the surge with a 2.3% gain, followed by industrials with 2%, services with 1.4%, and technology with 0.4%.
Except for modest losses in textiles and information technologies, all sectoral indices posted gains, led by leasing and factoring with 3.7%, construction with 3.4%, and chemicals with 3%.
Banks also gained over 3%, as a brighter outlook on the disinflation process reassured investors about the ongoing easing cycle by the Turkish central bank.
The improved sentiment in Turkish assets came despite the Central Bank of the Republic of Türkiye’s (CBRT) cautious stance on monetary policy last week, as the bank opted to limit the rate cut to 100 basis points instead of delivering the 150 basis-point reduction that markets had largely expected, following better-than-expected December inflation data.
In an interview with Bloomberg, Emily Fletcher, co-manager of U.S. asset management company BlackRock’s Frontiers Investment Trust, said Türkiye now accounts for nearly 10% of the fund’s portfolio.
"We feel there is opportunity, and hence you can see in our portfolio, we have a large allocation there," Fletcher said.
Fletcher noted the key risk is whether disinflation continues, as the central bank targets 16% inflation by end-2026 after missing its 2025 goal at 24%.
"If they are able to pursue it, then there’s a huge valuation discount... and therefore there could be some really interesting opportunities," she said.
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