Citizens are once again paying the price of trusting the AKP’s economic staff with their savings. Citizens, who want to protect their investments against inflation, are disappointed in the stock market this time. The rapid rally with bank shares ended with intense sales in bank shares. The loser was the last small investor to enter the stock market. Borsa Istanbul decreased from 3.649 to 3.446 yesterday.
In Borsa Istanbul, there have been great increases in banking indices, especially in public banks, for about a month. While the increase in the BIST Bank index, which was closed without a seller for days in a row in Borsa Istanbul, was followed with suspicion in the market, the Minister of Treasury and Finance Nureddin Nebati praised the stock market and directed the citizens who wanted to protect their income to the stock market. However, according to economists, the rise in the stock market was not based on economic fundamentals. Economists, who stated that they had a speculative impression, warned the small investor while pointing to the Wealth Fund as an invisible hand in the stock market. The day after the warning news in our newspaper, the stock market went down. In order to stop the intense decline in banking shares yesterday, the circuit breaker system was put into use in the morning hours to stop losses for big banks such as Akbank, Albaraka Türk, Yapı Kredi, Garanti BBVA, starting with Vakıfbank.
Economist Ali Ağaoğlu stated that the decline was due to the intermediary institutions taking collateral measures to reduce their risks and made the following comment:
“Everybody knows the interest rate mismatch in the market. Despite the 80% inflation, when there was 17-20% interest in banks, everyone turned to other areas for investment. Those with a lot of money bought housing, housing prices increased a lot. Therefore, both big and small people with money turned to the stock market. When the stock market has experienced a rapid rise in recent weeks, the risk of intermediary institutions has suddenly increased. Brokerage houses have increased their collateral amounts to protect themselves and we can say that the market has been shaken. Intermediary institutions took this collateral measure late. If it had been bought earlier, the markets might not have been like this. Since there were no foreign sellers in the stock market, there was no balancing. The volatility will continue.”
It is not yet known what the direction of the stock market will be. Analysts repeat the warning for investors to be cautious while stating that the balancing process will be monitored.