Borsa Istanbul reforms leading indices after price turbulence

With the reorganization of the stock market, Borsa Istanbul is also changing the criteria for inclusion in the leading indices. Investment advisers welcomed the reforms.

Istanbul. After the recent price turbulence, more than a quarter of the members have to leave the Istanbul leading index BIST-100. The operator of the Turkish stock exchange announced the changes, which will take effect from next month, on Tuesday. He didn't give a reason.

Last week, the Turkish central bank pumped additional money into the capital market after some asset managers ran into financial difficulties and triggered a sell-off in stocks. More than 100 of the affected funds were subsequently forcibly liquidated. At the same time, numerous people were arrested for suspected price manipulation.

The financial institutions Destek and Katilimevim were among the stocks that had to leave the Istanbul benchmark index. Their shares had initially multiplied in value since the beginning of the year. However, in the past few weeks they have lost a large part of these price gains. Some of the compulsorily liquidated funds were among the largest investors in these companies.

With the reorganization of the stock market, Borsa Istanbul is also changing the criteria for inclusion in the leading indices. The basic requirement is membership in the “Star Market” stock exchange segment. For this to happen, the equity capital must exceed certain thresholds. In addition, the volatility of the share price will also play a role in the future.

Investment advisor Onurcan Bal from brokerage firm Gedik Yatirim welcomed these reforms. “They contribute to more balanced price formation and make the Star Market a more reliable benchmark for investors.”