Newsletters
Türkiye's stock exchange, Borsa Istanbul, extended its buying streak on Wednesday as the benchmark BIST 100 opened the session at an all-time high of 14,677.26 points, up 1.3% from the previous close, shrugging off rising inflationary pressures.
In the following hours, the index edged above the 14,800 level, with daily gains widening to 2% as investors hailed easing oil prices, strong corporate earnings and a new tax incentive package expected to support exporters and foreign investment.
The banking index rose 2.6%, and all 27 sectoral indices advanced except for the chemical, petroleum, plastics, and investment trusts indices. Strong corporate earnings also provided additional momentum to the markets, supported by technology stocks.
Among the shares listed in the index, software company Pasifik Teknoloji led gains with a 9.9% rise, followed by renewable energy firm Margun, up 6%, and supermarket chain Migros, which gained 5%.
U.S. President Donald Trump’s statement that significant progress had been made toward reaching a final agreement with Iran, following his decision to temporarily suspend the Freedom Project, described as an initiative aimed at assisting ships stranded in the Strait of Hormuz, dragged oil prices down nearly 5%.
Declining oil prices ease inflationary concerns globally, and for Türkiye, a major energy importer, softer energy costs are expected to significantly alleviate price growth pressures.
In April, Türkiye's monthly inflation rose 4.2%, while energy prices surged 14.4%, pushing the annual inflation rate to 32.4%. The persistent upward pressure is likely to delay the Central Bank of the Republic of Türkiye (CBRT)’s potential return to rate cuts.
However, the negative inflation outlook did not dampen bullish sentiment, as Parliament is set to begin discussions on Wednesday on a much-anticipated legislative proposal introducing tax incentives for international investments and an asset peace regulation, boosting the appeal of Turkish assets.
The proposal would reduce the standard corporate tax rate of 25% to 9% for exporting manufacturers on income generated from export activities, while other exporting companies would benefit from a reduced rate of 14% on export-related earnings.
Set as preferred source
Set as preferred source
1 min read
1 min read
