On Wednesday, Borsa Istanbul released a market-wide circuit breaker after the. XU100 benchmark index plummeted 5% in just minutes of opening. This reaction follows the devastating earthquake that occurred on Monday. The BIST-100 index started with a 0.52% dip and quickly descended further to reach its current state of -5%, initiating the circuit breaker at 0712 GMT following pre-market trading, which began at 0655 GMT.
This Is the Second Interruption Since Monday
For a second consecutive day, trading on Borsa Istanbul was temporarily suspended after the benchmark BIST-100 index experienced an alarming 7.01% drop and the banking index 6.41% due to Monday’s devastating earthquake in Turkey and neighboring Syria. The circuit breaker kicked in at 1004 GMT, with trading scheduled to resume again at 1034 GMT.
The Disastrous Earthquake on Monday also Affected the Borsa Istanbul Stock Exchange
On Monday, the BIST-100 plummeted to a dismal 4.99% before circuit breakers were triggered and halted trading in multiple stocks; meanwhile, trade volumes dropped significantly to 21 billion lira ($1.12 billion), as documented by Ziraat Yatirim’s research report. The tragic 7.8 magnitude earthquake that shook Turkey and Syria on Monday brought utter destruction with it – leaving many injured or homeless while taking more than 5,000 lives away from both countries, as reported by Tuesday evening when Turkey declared 3,419 dead due to its own citizens alone.
Yesterday, investors panicked following the severe economic downturn and called for Borsa Istanbul to close its doors. As expected, today it was officially announced that transactions would be suspended after a 7% dip during morning trading led to an overall loss of 16.2%. Consequently, all stock market operations have been put on hold as we experience this turbulent period together.
Global Markets Awaits Fed Decisions
Analysts, who stated that a mixed course was followed in the global stock markets with the increasing uncertainties regarding the monetary policy of the US Federal Reserve, said that today the eyes were turned to the speech of Fed Chairman Jerome Powell at the Washington Economic Club debate.
Analysts noted that, technically, the 4,800 and 5,000 levels in the BIST 100 index are in the resistance position, and the 4,400 points are in the support position.
On the other hand, after the single price order collection at 13:24:18 and matching at 13:29:18 in the Borsa Istanbul stock markets, the transactions will continue with continuous trading as of 13:34:18.
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