Turkish Bourse gains 3.1% despite short-sale ban
Shafaq News/ On Monday, Turkish stocks rose by 3.1%, recovering some of the significant losses recorded last week following a decision by Turkiye’s Capital Markets Board to ban short-selling on the stock exchange.
The benchmark Istanbul stock exchange index had ended last week with a 16.6% drop, marking its biggest weekly decline since the global financial crisis of 2008.
The banking sector sub-index also saw a 3.23% increase by 08:56 GMT, after suffering losses exceeding 26% the previous week.
The Turkish lira was stable, trading at 37.9550 against the dollar, showing little change from Friday's close at 37.9500, after it fell by 3.5% last week.
Additionally, Turkiye's international sovereign bonds recovered some of their losses, with bonds maturing in 2045 rising by 0.7 cents to 83.7 cents on the dollar, according to TradeWeb data. These bonds had dropped more than three cents last week.
The market turbulence has been significant since the arrest of Istanbul Mayor Ekrem İmamoğlu on Wednesday, which triggered sharp declines in the lira, stocks, and bonds. This prompted Turkiye’s Capital Markets Board to implement exceptional measures, including the short-selling ban and easing restrictions on share repurchases.
