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Türkiye's stock exchange, Borsa Istanbul, opened sharply higher on Wednesday, with the benchmark BIST 100 index climbing 3.3% at the start before extending gains past 4% to move above 13,400 points, as the U.S.-Iran ceasefire eased pressure across global markets.
The rebound follows a 1.5% drop in the previous session, when the index closed at 12,921.56 points, with sentiment now quickly shifting as geopolitical tensions ease. The index, which ended the week of Feb. 27 at 13,718 before the conflict began, is still about 2% below that level.
Gains spread broadly across sectors, though chemicals and petroleum products lagged, falling more than 2%. Banking shares stood out, surging over 6% and leading the market’s upward move as investor appetite returned.
Among individual stocks, private lenders Akbank and Yapi Kredi posted rises exceeding 8%, while aviation-related companies also advanced strongly. Airport operator TAV and carriers Pegasus and Turkish Airlines each gained more than 6%, reflecting renewed optimism in travel-linked sectors.
Energy names, which had earlier benefited from elevated oil prices during the war, trimmed part of their gains. Refining giant Tupras and petrochemical firm Petkim saw declines of 6.8% and 7.9%, respectively, as oil prices cooled.
Türkiye’s financial indicators echoed the improving mood. The country’s five-year credit default swap (CDS) spread, which had edged above 300 basis points earlier during the conflict, narrowed by 17 basis points to 268, signaling lower perceived risk and easing borrowing costs. Government bond markets also reflected the shift, with two-year Treasury yields retreating below 40% as demand for Turkish debt strengthened.
The temporary ceasefire between the United States and Iran, which also involves Israel, reshaped market expectations and pushed investors back toward risk assets. Oil prices slipping below $100 per barrel help ease inflation concerns, reinforcing the shift in sentiment, while European gas futures at the Dutch TTF hub fall 16% to €44.3 ($51.8) per megawatt hour.
Asian markets had already moved higher earlier in the day, with European equities following. The Stoxx Europe 600 rose 1.9%, Germany’s DAX climbed 5.0%, the U.K.’s FTSE 100 gained 1.5%, and France’s CAC 40 advanced 1.3%.
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