Turkey Introduces New Stock Market Regulations, Benchmark BIST 100 Index Soars!

TradingKey - Turkey Unveils New Stock Market Rules, Sparking a Nearly 4% Surge in BIST 100.  

On Monday, Turkey's benchmark Istanbul BIST 100 index (Index: XU100) rebounded sharply, gaining 3.76% to 9,384 points, driven by the introduction of new stock market regulations.

BIST 100 Chart, Source: Google.

On Sunday, Turkey's Capital Markets Board announced several new stock market rules:  

1.The short-selling ban, previously limited to 50 stocks, has been expanded to cover all listed equities. The ban takes effect on March 24 and will remain in place one month, until April 25.  

2.Stock buyback rules have been relaxed, allowing listed companies to repurchase shares at prices above the latest closing price. Additionally, the minimum equity requirement for margin trading has been reduced from 35% to 20%.  

The new measures come in the wake of significant market turmoil. Last Wednesday, the detention of Istanbul Mayor Ekrem İmamoğlu triggered a sharp sell-off across Turkey’s financial markets, resulting in a rare simultaneous collapse of stocks, bonds, and the lira. On that day, the BIST 100 index fell more than 8%, triggering a circuit breaker. By Friday, the index had declined nearly 8% again, with multiple trading halts throughout the session.  

As of this report, the BIST 100 has rebounded nearly 4% today but it remains down approximately 13% since last Wednesday.