The bag spoke of a “increased volatility and extraordinary price movements after the earthquake disaster” to justify the decision. Before suspending trading on Wednesday, the stock had suffered heavy losses.
Turkish equities entered a downtrend on Tuesday. In other words, it falls back more than 20% from its January highs.
“At times of catastrophes like this, suspending operations in the stock market is one of the best decisions to protect investors,” said Haydar Acun, managing partner at Marmara Capital.
In a country where inflation is one of the great threats, investment in equities among retailers was one of the main shields to protect themselves from high prices.
“The current panic and bearish mode may also have increased risks for traders as it clouds rational thinking. It’s late, but still the right call.”said Mehmet Gerz, chief investment officer at Ata Portfoy.
The decline that the Turkish stock market has been recording in the last three sessions is the worst since December 2021 and is expected to be the worst weekly performance since the 2008 financial crisis. On Tuesday, the day the Istanbul index fell more than 8%, several automatic alerts went off.
Source: Ambito
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