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Turkish stockbrokers expect more volatility as lira meetings | Financial Markets News

After traveling in tandem for many years, the Borsa Istanbul 100 Index and lira disrupted this quarter.

Author Bloomberg

The rise of the lira in Turkey is deteriorating in the stock market, prompting investors to speculate on the new volatile period.

After many years of tandem travel, the Borsa Istanbul 100 Index and Lira disrupted this quarter, and their 30-day connection became the first of its kind in three years. The central bank cuts that began in September reduced the value of money by half and boosted the interest of the stocks as a safe haven for local investors, though that attraction has been curtailed by President Recep Tayyip Erdogan’s efforts to reduce the lira currency.

After Erdogan unveiled his plan to save money, Turkish corporations moved from a high price to a bear market in less than a week, signaling a major instability that is plaguing traders. Expecting more in the new year, and look forward to changing lira as a next step.

“Turkish stocks have improved significantly,” said Burak Isyar, chief financial officer at ICBC Turkey Investment in Istanbul. “Although instability continues for a while, they remain interested in the short term as long as the lira is stable in these areas.”

The lira rose to 15% Thursday, trading at 10.5345 per dollar from 6:34 am in New York. The money advance mainly with the help of foreign exchange-exchange institutions and funds including government banks, according to two people with the knowledge of the matter.

Meanwhile, the Borsa Istanbul 100 Index reversed profits and weakened to 4.3%. Benchmark was set up for a five-day loss for more than two decades, and was shut down in the bear market on Wednesday. The sale was suspended repeatedly this week, with the volume of cross-border trade and the amount of collateral increasing growth.

The overall growth of mobile phones rose to 1.4 billion liras ($ 124 million) on Monday from 80 million dollars earlier this month, with the equity benchmark being within its highest grip on less than three decades.

“We expect the market to settle down once the final requests are finalized,” Yunus Kaya, head of research at Istanbul-Alnus Yatirim brokerage, said in a phone call Thursday. “However, we see instability continuing.”

The move comes when Erdogan’s measures, which promised to be protected from money laundering, sent a lira. This removed the biggest aid to Turkey in the last three months.

These strategies are to reduce the demand for retail businesses and end the three-month economic crisis. However, they are also expressing concern over the country’s economic impact, with Turkey’s debt crisis close at an alarming rate since the outbreak began in 2020.

-With the support of Asli Kandemir.

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