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İMKB, global markets fall with a profit taking sell off wave
In morning trading the İMKB lost 1.87 percent. At the time Today's Zaman went to print, the İMKB was continuing to fall, losing an additional 0.3 percent in afternoon trading.
“It's difficult to pinpoint the exact cause [of the İMKB's fall],” Murat Berk, a senior analyst at Yapıkredi in İstanbul, told Today's Zaman. “The correlation of the İMKB with global benchmarks like the SP-500 has been high over the years, and it continues to be high. The İMKB has been the best performing market in the world to date. It was already extended, and a correction was probably overdue.” On the domestic front he attributed most of the weight to the depreciation of the Turkish lira as well as increasing bond rates as being the main trigger for the selloff. “I still define the selling as profit taking.”
The benchmark bond yield rose to 9.87 percent from the previous day's close of 9.73 percent. It has been supported over the past weeks on expectations the central bank would keep cutting interest rates, which have been slashed by 900 basis points since last November.
The lira traded at 1.5135 to the dollar, weaker than a close of 1.5045 the day before.
“Equities are losing steam across the board except for a few markets, but we think it is to be expected after a long-haul rally. … We think seasonality also adds skepticism to fresh positions,” Tera Securities said in a research note. “We expect profit taking to continue in Turkish securities.” The benchmark İMKB-100 has gained 72 percent so far this year. It underperformed the MSCI emerging market index, which traded down 1.36 percent on Wednesday.
İstanbul's most actively traded stock, Garanti, fell 1.77 percent, with the banking index falling 2 percent. Shares in the highest gainer on the index, Ray Sigorta, climbed 10.6 percent after it announced a price of $19.8 million for the sale of a 10 percent stake.
In Europe, Germany's DAX fell 40.44 points, or 0.8 percent, to 5,286.85, while Britain's FTSE 100 lost 28.39 points, or 0.6 percent, to 4,791.31. France's CAC-40 fell 27.72, or 0.8 percent, to 3,555.72. Tuesday, Wall Street shares fell by more than 2 percent.
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