FX.co ★ Turkish Stocks at July-Lows

In early September, Turkey's BIST 100 index slumped to the 10,700 level, marking its lowest point since late July. This decline was primarily driven by escalating political tensions. The situation was exacerbated by an Istanbul court's decision, which found that cash payments had swayed voting processes at the 2023 Istanbul provincial congress of the Republican People's Party (CHP). Consequently, the court ordered the ousting of the leadership that had been elected during the event. In reaction, the CHP initiated protests in Istanbul. These political uncertainties, coupled with a surprisingly high August 2025 inflation rate of 32.95%, led investors to doubt the central bank's capacity to reduce interest rates this month. As a result, banking and financial stocks experienced significant losses.