Türkiye’s stocks climbed for the fifth day and hit a new intraday record on Thursday, as investors’ risk appetite continued to increase, driven by the country’s disinflation efforts and improved geopolitical sentiment.

Borsa Istanbul Stock Exchange’s benchmark BIST 100 index climbed to a new intraday peak of over 11,301 points, surpassing its previous record of 11,252 set in mid July 2024.

The rally has delivered investors a nearly 15% return since the beginning of the year.

The index opened the session at 11,195, up 61.25 points, or 0.55%, from Wednesday’s close. It was last up 1.15% and trading at 11.263 points at 3:35 p.m. local time in Istanbul.

The banking index rose 1.58% and the holding index gained 0.70% after both started the day in positive territory.

Earlier this month, the index topped the 11,000-point threshold for the first time since July last year.

Analysts noted that technical resistance levels for the BIST 100 now stand at 11,300 and 11,400, while 11,100 and 11,000 serve as key support points.

Since the beginning of the year, the BIST 100 index has outperformed the world’s major indices with a return of approximately 14.4%.

Disinflation, interest rates, geopolitics

The latest advance was supported by optimism over Türkiye’s disinflation efforts and improved geopolitical sentiment amid signs of easing tensions in the Middle East and hopes for a resolution to the Russia-Ukraine war.

Markets have also been buoyed by the Central Bank of the Republic of Türkiye’s (CBRT) return to a rate-cutting cycle as inflation slows under a tighter policy framework.

Last month, the bank cut its key policy rate by 300 basis points to 43% as it relaunched the easing cycle that was disrupted by political turmoil earlier this year.

The bank had hiked the one-week repo rate to 46% from 42.5% in April and lifted its overnight lending rates to 49 % following market volatility over the arrest in March of Istanbul Mayor Ekrem Imamoğlu.

Imamoğlu was jailed pending trial over graft charges.

Before April, the CBRT had gradually cut the rate from December as inflation eased.

Annual consumer price inflation fell to 33.52% in July, sustaining a downward trend after peaking at 75% in May 2024.

The bank sees it falling to around 24% by the end of the year. It is aiming to cut inflation to 16% by the end of next year and 9% by end-2027.

Reserves reach new peak

Separate data on Thursday showed CBRT’s total gross reserves reached a new all-time high of $176.5 billion as of Aug. 15.

The reserves rose $2.14 billion compared to $174.4 billion in the week through Aug. 8.

CBRT officials last week said the monetary authority would maintain its reserve accumulation policy.

Since the start of 2025, all sectors except sports and insurance have recorded gains.

Leasing and factoring led with a staggering 378.05% surge, followed by tourism with 57.86% and construction with 57.08%. The banking index rose 11.9% in the same period, while the holding index added 23.4%.

Of the 100 stocks included in the BIST 100, 65 have gained value so far this year, while 32 have declined.

The market value of the BIST 100 exceeded TL 10.3 trillion (around $254 billion).

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