Since the beginning of the year, Borsa Istanbul has been active within the framework of different agenda items and expectations. The uncertainty caused by unconventional economic policies in the real economy, the anxiety caused by the regulations that constantly resonate in the financial sector, the earthquake disaster that shook Turkey deeply…
In the face of all these uncertainties, Borsa Istanbul was regressing from its historical peak of 5700, which it saw at the beginning of the year, while the eyes and ears of all investors in the market, big and small, were focused on the elections, which are seen as the last threshold. The results of the elections and the perspective of the new government to be established after the economy were among the most talked about topics among the industry professionals.
A “continue” message appeared from the ballot box. While Recep Tayyip Erdoğan was elected as the 13th President of Turkey, the future of the economy was handed over to Mehmet Şimşek, the former Minister of Finance and Deputy Prime Minister in charge of the Economy, who was eagerly awaited by the markets.
Lightning Turn Signal to Traditional Politics
While it was discussed in the backstage that Mehmet Şimşek wanted ‘full authority’ from President Erdoğan for the management of the economy, Şimşek, who took over the task from Nurettin Nebati after the announcement of the cabinet, signaled a return to the “Orthodox” economic policies in his first statements.
Şimşek, who underlined in his statements that Turkey should “return” to a rational basis in economic policies, stated that they would support the Central Bank and work together in the fight against inflation.
Turkey has no choice but to return to a rational basis.
Mehmet Şimşek, Minister of Treasury and Finance
“Lightning Days” in the Economy: The Market Waits for Foreigners
The expectation that foreign investors’ interest in Turkey would increase again with the “Şimşek” policies, especially after the speeches in the backstage that Mehmet Şimşek would lead the economy, started to create a festive mood in Borsa Istanbul. Borsa Istanbul, which closed the last week with a premium of nearly 12 percent, started its first trading day with an increase of 2.31 percent from 5,233 points, with the new economy management led by Mehmet Şimşek.
The “banking” sector, which has long stood out as the first sector that foreign investors would prefer if they returned, started the week with a rise of 3.57 percent, rising more than the overall index.
As of 12:45, Borsa Istanbul is trading at 5,278 with an increase of 3.20 percent. The highest rising share is Sasa Polyester with 9.22 percent.
First Opinion from Foreigner: “We Expect a Return to Orthodox Politics”
While the stock market was pricing both the new economy management and the return to orthodox policy domestically, the first reports from foreigners began to come.
In the report published after the announcement of the new cabinet, the US-based investment bank Goldman Sachs said, “We believe that the election of Mehmet Şimşek as the new treasury and finance minister increases the likelihood of monetary policy shifting in a more orthodox direction.”
The bank increased its dollar/TL forecast from 20 to 28 for the end of the year.
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