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Türkiye’s stock exchange Borsa Istanbul gained on Thursday after lawmakers adopted a bill suspending inflation accounting for businesses for the 2025, 2026 and 2027 fiscal years, lifting sentiment following what investors widely viewed as an underperforming year.
Opening the session with a 0.34% increase at 11,378.44 points, the benchmark BIST 100 index moved above the 11,400 threshold, last seen early last week, and climbed as high as 11,424.48 during intraday trade.
The previous day, the index had closed 0.44% higher at 11,340.10 with a daily transaction volume of ₺141 billion ($3.28 billion).
In its note on Thursday, QNB Invest, the investment arm of QNB Türkiye, said that holding above the 11,300 level points to a potential test of the 11,500 resistance. The firm noted that a move above 11,500 could lead the index toward its historic peak at 11,605 and potentially trigger new record attempts. It added that staying above the medium-term downward channel suggests potential for 13,000 points.
During the session, all main and sectoral indices except the brokerage houses index were up. Industrials led the gains, a move analysts linked to relief among BIST-listed industrial companies that had come under pressure from inflation accounting in previous periods and were now responding positively to the suspension.
Among sectoral indices, leasing-factoring, mining and nonmetallic mineral products outperformed, while the banking index rose by around 0.5%.
On Wednesday, the Turkish Parliament enacted a bill suspending the inflation adjustment requirement for the 2025, 2026 and 2027 fiscal years, following requests from taxpayers and financial professionals.
Inflation accounting is a tax rule that requires companies to adjust their financial statements when price increases exceed legally defined thresholds to ensure that profits and taxes are calculated on real, inflation-adjusted values. Under Türkiye’s tax law, it becomes mandatory when the domestic producer price index (D-PPI) rises more than 100% over three accounting periods and more than 10% in the current one, a system reinstated in 2023 and applied from early 2024.
Businesses and tax professionals had warned that incorrect application of the system could lead to additional tax assessments and penalties, intensifying concerns among smaller taxpayers already struggling with compliance obligations.
Separately, the period for financial restructuring of loans issued under banking law was extended by two years, a step expected to ease pressure on labor-intensive sectors by supporting companies facing ongoing cash-flow challenges.
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