BIST 100 returns with rapid growth

SAFAKNA TURKEY – As a result of the measures taken by the management of the economy, the stock market returned with growth after a break in transactions due to the earthquake.

The BIST 100 index started at 4,769, up 5.86 percent from the February 7 close.

Prior to the opening of the BIST 100 index, the daily premium on BIST 30 futures was 10 percent.

While earthquakes hit Kahramanmaras on February 6, on February 8, on the third day of the earthquake, the decision was made to close the stock market and transactions on February 8 were cancelled. The deals on February 6 and 7 were not cancelled. The BIST 100 index closed the day on February 7 at 4505 points, down 8.6%.

Many measures announced

Before the opening, a number of measures were announced, the size of which could reach billions of lire. Among these support measures, the increase in the share of the stock market of funds in the portfolio of public contributions in the private pension system from 10 to 30 percent and support for the Turkish Wealth Fund with a fund mechanism come to the fore.

In addition, a 0 percent tax withholding on company share repurchases was published in the Official Gazette on Tuesday, while the Capital Markets Board canceled the requirement for a General Assembly decision to repurchase shares.

Turkish Airlines, Erdemir and İşbank announced their share buyback programs in their statements to the Public Disclosure Platform. BRSA has also relaxed the capital adequacy rules applied to bank share buybacks.

Borsa İstanbul also announced reopening measures. Accordingly, order cancellation, price deterioration and quantity reduction will not be allowed at the opening of the session.

In another announcement, BIST announced that it has decided to cancel all current measures based on investment instruments under the Precautionary Management System (TYS) and the Volatility Based Precautionary Action System (VBTS).

Daily inflow forecast up to 1-1.5 billion Turkish lira

Given the increase in the share of the portfolio of government contributions to BES from 10 to 30 percent, it is expected that the inflow of resources to the stock market will reach 10 billion Turkish liras within 10 days, which is mandatory.

Assessing Bloomberg HT’s position, Ata Portfolio Management General Manager Mehmet Hertz said that the amount of the accumulated state contribution is 50 billion liras, of which 6 billion liras, which corresponds to 12 percent, is kept in stocks. Hertz said that with the new regulation, the transition to reserves of 9-10 billion lira will happen within 10 days after the harmonization process.

If the opportunity to increase the share of shares in the portfolio of state contributions to Gerz BES to 50 percent, envisaged by the decree, is realized, the question of an inflow of 25 billion lira into shares may arise. He said he was waiting.

Gökhan Uskuai, fund manager at Allbatross Asset Management, did a similar analysis. Uskuay said they expect 900 million TL-1 billion TL per day to flow into inventory during the compliance period. Uskuay said that if the Turkish Wealth Fund also does shopping, the daily contribution to the stock market could be 1-1.5 billion Turkish liras.