What steps are taken when the stock market opens?

SAFAKNA TURKEY – Our country is in great pain. Kahramanmarash of magnitude 7.7 and 7.6 experienced two strong aftershocks one after the other.

In the early days of the earthquake, the only goal was to get to the survivors as soon as possible, and at the moment when hopes were over, removing the debris and healing the wounds of the survivors would come to the fore.

Proper management of this process will only be possible if public institutions working in various fields act with the awareness that their responsibilities require. It should be noted that at the moment the stock market cannot be ignored.

Why is the response so high?

According to the latest data from the Central Registration Agency, there are 381,000 stock market investors in the region. The fact that the stock market remained open on the day of the earthquake and after it caused a strong reaction from investors. There were many reasons for this. Undoubtedly, the biggest reason is the uncertainty of the fate of investors living in the region. The only concern of those who saved their lives, as well as the investors who died and were buried under the rubble, was to help their loved ones under the rubble.

On the other hand, the whole country, young and old, mobilized, hastened to help the region. It was also clear from the trading volume that no one was thinking about the stock market. In the stock market, which had a trading volume of more than 110 billion Turkish liras before the earthquake, on the first day of the earthquake, the volume of transactions was 27 billion Turkish liras. On the second day, despite intense sales, the volume only increased to 68 billion Turkish lira. In the first two days after the earthquake, when the stock market was open, it is not difficult to understand that the stock market investor, like the whole of Turkey, was trying to help the earthquake victims by looking at the volume of transactions.

Times of great calamity, such as earthquakes, are times when society must come together. To the extent that the institutions of the state provide the basis on which to form this unity, the unity becomes stronger. Again, by the volume of trading, we understand that the reaction of the investor to help the victim of the earthquake can be beneficial to opportunists on the second day of the stock market opening. However, this should be prevented by the heads of institutions. Both the open stock market and rising prices for cement companies prompted a reaction from investors who acted in anticipation of the earthquake. On the one hand, those who are trying to lend a helping hand to those stuck under the rubble in the disaster zone, on the other hand, someone rushes into cement stocks, as if there is nothing on the open market and gains 10 percent in one day …

While an investor in the disaster area and an investor who went to the rescue of the region tried to salvage the wreckage, and opportunists in the open stock market made a profit of 10 percent in one day, the savings of regional investors and those who rushed to the rescue quickly fell. However, charity should not be lost…

Realizing the severity of the incident, Borsa İstanbul closed the stock market on the third day of the earthquake and canceled trades on the same day. Investors, on the other hand, do not find this sufficient and expect the first two days of transactions to be cancelled.

mourning period

We are going through a period of mourning after intensive rescue work. During this period, it is no less important than the period of rescue work. You will ask why? The real pain starts now. Helping earthquake victims and meeting their needs is a priority. The state and the private sector must cooperate in the process of rebuilding life after the earthquake.

What to do now?

He enters a period of healing. Each institution must develop its own plan. It is important to plan the resources going to the region, ensure their distribution based on needs and ensure security.

The stock market must also do its own planning. First of all, it is important that transactions in the stock market begin in a safe environment. What does it mean? The safety of investors in the earthquake zone, the safety of investors who go to the region, rush to help, do not allow trading…

My Suggestions for Day One Measures in the Stock Market

one-) First of all, you should cancel the first two days of transactions.

2-) In case of possible losses due to the cancellation of the transaction in the first two days, these losses must be compensated from the funds that will be created by the exchange.

3-) The credit and default interest of the regional investor and the investor who lost his life must be removed.

4-) Prior to the opening of the stock market, decisions to reduce volatility must be made and announced.

5-) Short selling should be stopped until the market returns to normal.

6-) Transactions for the sale of robots should be temporarily blocked.

7-) The wealth fund should lead the market and make the decision to buy out its own subsidiaries.

😎 Decisions should be made to encourage companies to buy back their shares.

9-) Unit rates in private pension funds should be increased.

10-) The percentages of completed pledges should be lowered.

11th-) Daily margin should be temporarily capped.

12-) It is necessary to facilitate advance payments of dividends to listed companies. Decisions should be made to encourage companies to pay dividends.