Turkiye has launched an investigation into potential market manipulation following sharp price and volume fluctuations in Istanbul’s stock market. The Istanbul Chief Public Prosecutor’s Office is examining individuals and entities accused of spreading misleading or manipulative information, Daily Sabah reported this citing Anadolu Agency (AA).
The probe comes after complaints about unusual equity trading patterns, coinciding with a separate investigation by the Capital Markets Board (SPK). Authorities are scrutinizing transactions from all institutions after Friday’s sell-off, which saw the Borsa Istanbul Stock Exchange (BIST) 100 Index drop 3.4% in the afternoon session before closing 2.1% lower at 9,602.16 points. Regulators have not provided specific reasons for the volatility.
In response, Borsa Istanbul implemented a temporary uptick rule on short-selling transactions for its top 50 companies, requiring that short sales occur at a price higher than the last transaction price. The BIST 100 Index rebounded on Monday, opening 0.96% higher at 9,694.37 points before trading at 9,632.13 points by 1:50 p.m. local time.
The market swings follow a JPMorgan report suggesting Turkiye’s equities could gain over 20% this year, driven by economic reforms aimed at lowering inflation. The bank recently upgraded Turkish equities to “overweight” from “neutral,” citing the central bank’s path to lower interest rates as a potential boost for stocks.
Currently, Turkiye’s central bank policy rate stands at 45% following rate cuts of 250 basis points in both December and January. JPMorgan forecasts the rate could drop to 30% by year-end. The BIST 100 Index, trading at seven times its 12-month forward price-to-earnings ratio, has risen about 8% in local currency terms over the past year.
Bd-pratidin English/ Jisan
