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Türkiye’s benchmark stock index, Borsa Istanbul (BIST) 100, fell over 2% in Wednesday trading after the previous day’s 3.6% drop, as a sell-off wave followed a court decision that dismissed the main opposition Republican People’s Party’s (CHP) Istanbul chair.
Starting the day flat at 10,877.45 points, the index deepened losses during the following hours, sliding 2.4% to 10,614.64 as of 11:05 a.m. local time (GMT+3).
Among the sector indices, the banking index recorded the sharpest decline, falling more than 6%, followed by financials with a 3% drop and services and industrials with 1%.
Banking and financial indices had driven a rally on Borsa Istanbul since the start of June, following signals from the central bank that it might resume interest rate cuts.
The BIST 100 reached a new all-time high in August, supported by strong foreign inflows of more than $1.5 billion during the period. Before the sell-off, the index’s yield had exceeded 28% since June.
Due to the 2% drop in the BIST 100 index, the uptick rule on short-selling was applied until the end of the session for equities eligible for short-selling.
The sell-off wave was triggered after Tuesday’s ruling, which annulled CHP’s 38th Istanbul Congress over allegations that delegates were paid to vote, reigniting fears of potential political turmoil.
In the final hours of Tuesday’s session, the BIST 100 index fell to its lowest level since July at 10,616.64, with losses exceeding 5.8% and nearing the 6% circuit-breaker threshold.
A total of 88 indices lost value, while 11 closed with gains. The day’s total transaction volume reached ₺208.7 billion ($5.07 billion), and the overall market value of the index stood at ₺10.1 trillion ($246.2 billion).
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