Will share buybacks be a solution to declines?

The fund crisis, which started with the default of some funds of Tera Portföy and Pusula Portföy in Borsa Istanbul, spread throughout the stock market in a short time. Serious selling pressure was felt in many stocks. The loss in the BIST100 index reached 17 percent at the end of September. In order to curb the sharp decline in their shares, some companies started to buy back their shares. With the decision taken on September 22 to facilitate the share repurchases of companies, the Capital Markets Board (CMB) lifted the upper limit on the total price of share repurchases until further notice.

Between September 1 and October 14, 113 companies bought back shares at Borsa Istanbul. 79 of these companies decided to buy back shares after September 1. In fact, 73 of them announced share buybacks after September 14, when the fund crisis began and sharp sales began in the stock market. In the last month and a half, 113 companies bought back shares worth 13.1 billion TL in total.