Mehmet Şimşek Spurs Record Weekly Closing on Stock Exchange
The appointment of Mehmet Şimşek as the Ministry of Treasury and Finance and Hafize Gaye Erkan as Chairman of the Central Bank of Turkey has caused a positive impact on the markets. The BIST 100 index in Borsa Istanbul ended the week with a gain of 1.31 percent, marking the highest weekly close of all time. The holding index gained 1.28 percent while the banking index experienced a decline of 0.68 percent. Communication was the sector that gained the most with an increase of 4.72 percent.
Analysts have reported that global markets are seeing an increase in risk appetite as the expectation of central banks abandoning their “hawk” policies strengthens. On the other hand, the European Central Bank is expected to increase interest rates by 25 basis points at their meeting on June 15, with an expected total increase of 50 basis points by the end of the year. Meanwhile, economists expect the current account to have a deficit of $4.47 billion in April.
In investment instruments this week, stocks traded on Borsa Istanbul gained 10 percent on a weekly basis, and mutual funds and private pension funds gained 8.49 percent and 7.10 percent, respectively. “Fund Basket Funds” was the highest earner among mutual funds with a gain of 10.97 percent. Overall, the market is expected to closely monitor the interest rate decisions of the Fed, ECB, and Bank of Japan, Turkey’s credit rating assessment by Moody’s, as well as balance of payments, unemployment rate, budget balance, and housing sales data.
