FX.co ★ BIST 100 Rallies at Year Start

Turkey's BIST 100 stock index soared to an unprecedented high, exceeding the 12,700 mark in January. This rally was driven by robust performance from the banking sector and the defense industry as markets evaluated the prospects for financial conditions this year. The Turkish central bank implemented a 100 basis point reduction in its benchmark policy rate during its first decision of the year, which was less than the anticipated 150 basis point cut. Nonetheless, the central bank reaffirmed its expectation that underlying inflation would continue to decelerate throughout the year. This development nurtured optimism among equity investors that the degree of economic uncertainty in Turkey might be less intense this year, thereby bolstering the corporate environment and boosting shares in the prominent banking sector since early January. The stock index also benefited from a decrease in political uncertainty following the national court's dismissal of the case against opposition party politicians last year. Additionally, Aselsan continued its remarkable surge of over 200% from the previous year, as geopolitical tensions worldwide sustained demand for defense companies within NATO.