Turkish stocks struggled to regain momentum on Monday after last week’s sharp decline, amid rising tensions in the country following the jailing of Istanbul Mayor Ekrem Imamoglu pending trial. The Borsa Istanbul benchmark index rose 1.87% by 1430 GMT, but its gains were largely wiped out from previous days’ losses.
The move to jail Imamoglu, President Tayyip Erdogan’s main rival, sparked widespread protests and criticism from opposition parties, European leaders, and hundreds of thousands of demonstrators. Analysts predict a prolonged period of political turmoil and uncertainty.
“The protests mark the most significant and widespread public reaction in over a decade,” said Wolfango Piccoli at Teneo. “President Erdogan’s political agenda has inflicted serious damage on Turkey’s economic outlook.”
Turkey’s capital markets board banned short selling on the Istanbul bourse, eased share buyback limitations, and adjusted equity ratio requirements until April 25. However, experts believe these measures may not be enough to reverse the market’s losses.
The lira traded at 37.9955 against the US dollar, steadying after a 3.5% drop last week. Barclays expects the Turkish central bank to maintain its policy rate of 42.5%. Turkey’s international sovereign bonds also recovered some losses, with the 2045 maturity up 0.5 cents.
The Turkish government has vowed to use all necessary instruments to maintain stability, and experts are cautiously optimistic about the lira’s prospects.
Source: https://www.reuters.com/markets/turkey-stocks-stage-cautious-rally-after-last-weeks-plunge-istanbul-mayor-arrest-2025-03-24