17 Sep 2026

Why Turkey’s Stock Market Is Suddenly Breaking Down

The BIST 100 has fallen roughly 10–11%, including a 6% drop that triggered a market-wide circuit breaker. The key concern is no longer valuation—it is whether investors can get their money out. Pusula Portföy disclosed delays in meeting some fund redemptions. When withdrawals rise, managers need cash and often sell their most liquid holdings—not necessarily their weakest ones. That is how otherwise healthy stocks get dragged into the selloff. New fund regulations, 37% domestic interest rates and expensive oil are adding pressure. Meanwhile, a hawkish Fed could strengthen the dollar and reduce demand for Turkish assets. This is not yet a full currency crisis: the lira has remained far more stable than equities. But the risk is clear. Once a market starts pricing exit risk, fundamentals become secondary. The turning point will come when redemptions are met and forced selling finally ends. Source: EndGame Macro @onechancefreedm

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