The Borsa Istanbul Has Set a New RecordFri, Dec 09, 2022, 06:19:26 AM
After the statements of the Fed President Powell, the stock market has seen a positive atmosphere and BİST 100 (Borsa İstanbul) rose above the 5000 spot which is a new record. The Fed President Jerome Powell stated that it is reasonable to slow down the increases in interest rates while getting close to be able to keep the inflation under control. In the Beige Book, which is a report published by the Board of Governors of the Federal Reserve System mentions that despite the containment of inflation there is still concern about recession and also that the uncertainty and increasing pessimism about the current economy among many of the participants.
According to the data from TÜİK, economy of Türkiye has grown 3,9 compared to the third quarter of the last year meanwhile, the BİST 100 saw a record closing of all times with 5046.19 points rising by 1.38 percent. BİST 100 index continues its rise as investors keep on using equities as hedge against surging consumer prices and the devaluation of the Turkish Lira, searching for assets to store their savings.
Rate Cuts, Inflation and Stock Market
The Central Bank of Turkey cut borrowing costs by 150bps to %9 in November adding to the total of %10 rate cut since September 2021. Meanwhile, inflation rate remains high even though it slowed down for the first time in 18 months in November to the 84.4 percent. BİST index is up nearly 170 percent currently in 2022 December and %80 in dollar terms. On the corporate front however, Turkish Airlines are among the best performers with more than %500 year to date followed by Yapı Kredi Bankası (YKBNK) with slightly more than increase %200 a year and Tüpraş (TUPRS) with %188.82 increase a year in the third spot.
Latest News From Exchange Market
Among the important news, producer costs PMI has been announced along with the unemployment rates in the Euro Zone and the analysis on the income and expenses in USA. In Türkiye, the monetary policy committee (mpc) has gathered and experts pointed out that the 5000 point is an important resistance point while explaining why 4.900 and 4.840 points act out as a support.