A critical week, when central banks will announce their interest rate decisions, has started with a sharp decrease. Turkey’s benchmark stock index ended yesterday at 3,199.54 points, decreasing 5.26% from Friday’s close. Starting the week at 3,378.87 points, Borsa Istanbul’s BIST 100 index lost 177.79 points from the previous close. The index’s lowest value during the day was 3,199.54, while its daily high was 3,393.66. The total market value of the BIST 100 was around TRY 2.57tr by market close, with a daily trading volume of TRY 53.8bn. This negative course, which was adversely affected by inflation in global markets and an increasing risk of recession, has continued to be prevalent at the beginning of the new week, according to analysts. They said 3,150 points will be the support level and 3,500 points will be the resistance level for the BIST 100 index, in technical terms.
In the meantime, the Capital Markets Board of Turkey (SPK) made a statement about these developments in the press and on social media channels. “Our Board continuously supervises and audits the actions of real persons and legal persons against market abuse,” SPK said, stressing that Borsa Istanbul instantly monitors equity transactions.
Isbank and Denizbank have suspended the usage of the Russian payment system Mir, the banks said yesterday, following a U.S. crackdown on those accused of helping Moscow skirt sanctions over the war in Ukraine. Reuters said the moves, announced separately, came after Washington expanded its sanctions last week to include the head of the entity running Mir, which is popular with the tens of thousands of Russian tourists who arrived in Turkey this year. The suspensions by two of the five banks that had been using Mir reflect their effort to avoid the financial crossfire between the West and Russia, as the government takes a balanced diplomatic stance.
Irit Lillian, who has served as the Chargé d’Affaires from Israel to Turkey for the last two years, has been appointed the Ambassador of Israel to Turkey. She is the first person to hold the post since 2018 when Turkey withdrew its ambassador from Israel and kicked out Israel’s ambassador to protest the killing of dozens of Palestinians by Israeli gunfire in protests along the Gaza frontier. On August 17, Israeli and Turkey announced the restoration of full diplomatic relations, including an exchange of ambassadors.
The Turkish Space Agency (TSA) and U.S.-based space firm Axiom have signed an agreement to send the first Turkish manned mission to space. “We have signed a historic agreement for the first manned space mission to be carried out on the 100th anniversary of our Republic,” Industry and Technology Minister Mustafa Varank said on Twitter. “We will cooperate with Axiom Space for the training and flight of this Turkish space traveler. The selection process is ongoing,” he added. TSA also tweeted that the two sides “have signed a historic agreement to send the first Turkish astronaut to expand scientific development on Earth and in orbit.”
DAILY AGENDA
The non-domestic producer price index (ND-PPI) jumped 118.94% in August, compared to the same month last year, according to the Turkish Statistical Institute (TurkStat). The ND-PPI increased by 2.64% on a monthly basis.
The Treasury and Finance Ministry will issue a 13-month (385 days) zero coupon bond and reissue a 10-year (3,605 days) semiannually CPI (Consumer Price Index)-indexed government bond.
Meanwhile…
>> The price of diesel fuel has been reduced by TRY 1.76 per liter, according to sector officials.
>> The country’s machinery exports surged by 7.3% to USD 16.1bn in January-August, compared to the same period of the previous year, according to the consolidated data prepared by the Machinery Exporters’ Association (MAIB).
>> The bilateral trade volume between Turkey and Germany broke a record at EUR 40bn, according to Jürgen Schulz, Ambassador of Germany to Turkey.
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>> How should the change in industrial production be read?
Our Eco Analysis Columnist Alaatin Aktas examines the monthly and annual changes in the Industrial Production Index.
