Turkish authorities detained 17 people on Tuesday in connection with suspected stock market manipulation. The individuals are accused of creating "artificial fluctuations" in Istanbul's stock market, with the goal of securing unfair profits through manipulative practices in capital market instruments, reports Daily Sabah.
The detentions are part of an investigation led by the Istanbul Chief Public Prosecutor's Office, which follows unusual price movements and volume fluctuations observed in the Borsa Istanbul Stock Exchange (BIST) on February 21. These fluctuations prompted a simultaneous investigation by the Capital Markets Board (SPK), after complaints were raised regarding suspicious market activity.
State broadcaster TRT Haber reported that the investigation is ongoing, and additional detentions could occur as authorities continue their probe.
On February 21, the BIST 100 Index experienced a sharp 3.4% decline in the afternoon, which led the exchange to implement an uptick rule on short-selling. Although the index partially recovered, it still closed down 2.1% at 9,602.16 points. As of Tuesday afternoon, the BIST 100 Index was trading at 9,926.76 points, reflecting a 0.16% increase.
The probe coincides with positive market projections from JPMorgan, which suggested that equities in Turkiye and Argentina could see returns exceeding 20% in 2025, driven by policy reforms aimed at reducing inflation. JPMorgan analysts noted that Turkiye’s path toward lower inflation and interest rates could bolster its equity market, with the BIST 100 index trading at a favorable seven times its 12-month forward price-to-earnings (PE) ratio.
The index has risen approximately 8% over the past 12 months, with interest rate cuts of 250 basis points each in December and January bringing the Turkish central bank’s policy rate to 45%. Economists predict that rates may fall to 30% by year’s end, aligning with JPMorgan's forecast.
Bd-pratidin English/ Jisan
