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Türkiye’s stock exchange, Borsa Istanbul, sharply edged lower during Tuesday’s session following Treasury and Finance Minister Mehmet Simsek’s remarks on alleged market manipulations, stating that the government is aware of irregular activities conducted through certain investment funds and plans to introduce tougher penalties and stricter regulations.
The benchmark BIST 100 index, which opened the Tuesday session at 11,049.93 points, down slightly by 0.09%, or 10.45 points from the previous close, ended the session with a 1.32% loss at 10,914.10 after Simsek’s remarks.
The banking index fell by 0.37%, while the holding index declined by 0.44%. Among sector indices, the best performer was securities investment trusts, rising 1.57%, whereas the biggest loser was the chemicals, petroleum, and plastics sector, which dropped 3.74%.
Speaking at the 9th Capital Markets Congress in Istanbul, organized by the Turkish Capital Markets Association (TSPB) under the theme of "interaction," Simsek said the government will "strengthen the regulatory framework and address existing gaps" to restore trust in the financial system.
"We know that manipulations are being carried out particularly through certain funds, and we are aware of the lack of regulation in that area," Simsek said. "We will close those gaps and, in the coming period, raise the intensity of our fight against manipulation beyond even our efforts against the unregistered economy. This is perhaps the most important message I want to convey at this congress."
Simsek said the expansion of Türkiye’s investor base and the rise in listed companies — which stands at 588 — show growing market confidence, but the short average shareholding period — only 51 days — remains a challenge. "This is not something only regulators can fix; it requires the joint effort of the entire ecosystem," he said, adding that rebuilding foreign investor trust is a key goal.
He linked market deepening to the government’s disinflation program, noting that Borsa Istanbul’s market capitalization-to-GDP ratio, currently around 29–32%, could realistically double in the coming years.
The minister also emphasized the need for transparent and rule-based processes in public offerings and stronger governance standards. "The stock market is not a playground," he said. "It is about building genuine partnerships and long-term ownership."
Simsek concluded that the government and the financial sector share the same vision and will continue working together to build a more transparent and resilient capital market ecosystem in Türkiye.
On Monday, the BIST 100 index closed the session at 11,060.39, up 0.81% from the previous close, as October’s better inflation figures reignited optimism over the ongoing easing cycle. The industrial index rose 1.57%, the financial index gained 1.14%, the services index increased 0.35%, and the technology index advanced 0.29%.
Türkiye’s consumer prices rose 2.55% in October, lowering annual inflation to 32.87% and signaling a return to the downward trend after September’s temporary rise to 33.29%, giving the central bank more room to consider a larger rate cut at its December meeting beyond the 100 basis points delivered in October, which brought the policy rate to 39.5%.
Global lenders anticipate a cautious monetary easing path in Türkiye after October inflation slowed more than expected, but underlying pressures persisted.
U.S. investment bank Citi said the complex inflation outlook and weakening growth make it difficult for the central bank to sustain tight policy for long, projecting the policy rate to fall to 38.5% by year-end from 39.5%.
German lender Deutsche Bank maintained its call for a 100-basis-point cut in December, noting that monthly inflation of 2.55%, below forecasts, brought the annual rate down to 32.9%. The bank said easing political uncertainty could allow gradual rate reductions if exchange rate stability continues.
HSBC kept its forecast for a 150-basis-point cut at the Dec. 11 meeting, saying the CBRT is likely to see the latest data as supportive of continued easing. The bank left its year-end inflation forecasts unchanged at 32% for 2025 and 20% for 2026.
The Central Bank of the Republic of Türkiye (CBRT) will present its fourth Inflation Report on Friday, November 7—an event closely watched by markets—as the recent slowdown in the disinflation trend has raised questions about the credibility of the bank’s latest inflation targets.
The bank is expected to revise its targets after having set interim goals of 24% for end-2025 and 16% for end-2026 in its third inflation report, while Finance Minister Mehmet Simsek recently acknowledged that the 2025 target will be "hard to reach" due to persistent economic pressures, drought conditions, and geopolitical tensions.
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