There were some dynamics that were always dominant in the global capital markets. The crisis of 1907, in which the money market collapsed in the USA, the Great Depression of 1929, the European Debt crisis of 2009… Economic developments of such a global scale are events that affect all market economies.
Also, each country’s capital markets have their own internal dynamics. While these dynamics differ from country to country, they differ from period to period for Turkey. While this dynamic is affected by the macro changes in foreign countries during the periods when foreign investors are dominant in the Stock Exchange, in periods when foreign investors’ weight is extremely low, it is not even taken into consideration.
The period we are in is a period in which we do not care about the developments in this foreign market, we live only with our own internal dynamics, we play and play ourselves. Investors, producers, and households’ eyes and ears, so to speak, returned to the ‘rational’ ground of the economic management under Mehmet Şimşek, and within this framework, the CBRT Chairman Hafize Gaye Erkan mobilized monetary policy tools to combat inflation. In addition, the reorganization of fiscal policies, which is another pillar of the fight against inflation, for this purpose. However, these are all known as ‘bitter prescriptions’.
Today, a series of developments, especially in the field of fiscal policies, constitute the first examples of the decisions taken by the new economy management within the scope of the fight against inflation. While market actors are drawing the roadmap of what will change in the fight against inflation, as well as the 500 basis point increase in Corporate Tax, continuing to support exporters by separating them from this increase and the burden of KKM on the CBRT’s shoulders from the Treasury’s shoulders, Borsa Istanbul is both hot and cold today. the winds blew!
‘Tax’ Out of the Bag Confused in the Stock Exchange
Expectations that the newly appointed economy administration would return to orthodox policies in line with the goal of restoring the economy to a ‘rational’ ground from the very first days, which fluctuated with the new year, introduced a new rally to Borsa Istanbul after the 28 May elections. During this period, eyes were especially focused on the decisions that Mehmet Şimşek and Hafize Gaye Erkan would take.
Today, new reflections of the decisions taken by the new economy management have emerged. While the Corporate Tax, which is planned to be implemented as 20 percent, will be increased to 25 percent, this rate will be applied as 30 percent for some financial sectors. However, in order to support exports, with some exceptions, the bag is among those that have been passed from the law.
In the light of all these developments, Borsa Istanbul followed a pessimistic course today. Starting the day with a positive start with the inflation data announced by TURKSTAT, Borsa İstanbul rose to the level of 6.068 in the first minutes, while the new ‘taxes’ that came out of the bag caused Borsa İstanbul to regress to the level of 5.889.
While there were sharp declines in the banking index, the pessimistic trend in Borsa Istanbul did not last long. Borsa Istanbul, which closed the day at 6,106 points with an increase of 1.71 percent, seems to be more volatilely affected by the changes in fiscal and monetary policy in the coming days. According to market experts, the main reason for this volatile course lies in the different interpretations of the decisions taken by the new economy administration by different segments. Particularly, market members drew attention to the projections of foreign institutions regarding the CBRT’s decision to increase interest rates by 650 basis points, and they expect the Treasury to use fiscal policy as a weapon.
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