Borsa Istanbul Rallies: Risk Appetite Holds Despite Industrial Contraction

Borsa Istanbul defied geopolitical uncertainties limiting global risk appetite, pushing the BIST 100 index to 13,876.75 points by midday.

Domestic Resilience Amid Global Risks

Maintaining an upward trend in the first half of the day, the BIST 100 rose by 97.35 points or 0.71% by 13.00, marking a distinct divergence from global sentiment. This market momentum was underpinned by a substantial trading volume of 84.1 billion lira:

■The banking index lost 0.17%, while the holding index gained 0.41%.

■Textiles and leather led sector gains with a 2.14% increase, whereas the transportation index fell by 0.96%.

■The most traded stocks included CW Enerji, Ereğli Demir Çelik, Turkish Airlines, Sasa Polyester, and ASELSAN.

Industrial Contraction Signals Economic Slowdown

While markets traded positively, newly released macro data warrants scrutiny. According to the Turkish Statistical Institute, calendar-adjusted industrial production fell by 1.4% year-on-year in June. This data reinforces signals of an economic slowdown, even as the technology index rose 1.57%, highlighting significant sectoral divergence.

The contraction in industrial production confirms a noticeable cooling in demand. The weak performance of the banking index alongside industrial output data clearly reflects the pressure of tightening monetary policies on commercial loans and rising financing costs for the real sector. The contraction in credit access for SMEs may continue to suppress production capacity at these levels.