Geopolitical Tensions Shake Markets: Construction Sector Bleeds While Leasing Surges

The BIST 100 index on Borsa Istanbul closed the day in negative territory, overshadowed by geopolitical developments in the Middle East suppressing global risk appetite. Despite testing the 14,050 levels, the index finished the day with a selling pressure, recording a drop of 40.20 points from the previous close, while market volatility was accompanied by a high trading volume of 165.7 billion lira.

Geopolitical Risks and Sectoral Divergence

In a day where investors sought safe havens, a sharp performance divergence was observed among sector indices. While banking and holding indices led the general decline, buying interest in financial services stood out.

■The banking index closed the day with a loss of 1.09%.

■The holding index declined by 0.6%.

■The sector with the highest gain was financial leasing and factoring, rising by 4.19%.

■The sector losing the most value was construction, falling by 3.38%.

Data Agenda and Technical Resistance Levels

Analysts note that tomorrow's intense data flow will play a critical role in determining market direction, summarizing the support and resistance points at technical levels as follows:

■domestically, the House Price Index will be monitored.

■Abroad, the UK unemployment rate, the ZEW economic confidence index for Germany and the Euro Zone, and US industrial production data are on the agenda.

■Technically, for BIST 100, 14,000 and 13,900 points are support, while 14,300 and 14,400 points are resistance levels.

From a wealth management perspective, the most striking divergence of the day is the contrast between the 3.38% loss in the construction sector and the 4.19% rise in financial leasing. The heavy selling in construction suggests that concerns regarding mortgage rates and construction costs are being priced in ahead of tomorrow's housing price index release. Conversely, the strong performance in financial leasing signals companies turning to alternative instruments to manage cash flows and secure investment financing, moving away from traditional bank loans. Amidst current volatility, financial leasing stocks may be considered a potential hedge tool against interest rate volatility for investors focused on cash management.