Borsa İstanbul BIST 100 index falls 8.18% amid fund liquidity concerns

Borsa İstanbul's BIST 100 index experienced a significant weekly decline, closing down 8.18 percent at 13,284.42 points. The downturn was driven by widespread selling pressure, particularly affecting the financial, technology, and industrial sectors.

A central factor in the volatility was a liquidity crisis involving investment funds. Following reports that certain portfolio management companies could not meet redemption requests, concerns arose regarding potential ‘Ponzi-like’ structures and the use of illiquid assets to inflate net asset values. In response, the Capital Markets Board (CMB) authorized Türkiye İş Bankası and Ziraat Bankası to manage the liquidation process for 131 funds across seven management companies.

Hazine ve Maliye Bakanı Mehmet Şimşek addressed the situation, stating that the issues were limited to a small number of funds and that there is no systemic risk or structural problem in the market. Meanwhile, Bank of America (BofA) recorded significant net sales, notably in Koç Holding.

On the international front, MSCI reiterated concerns regarding the Turkish capital markets, specifically citing issues with transparency, information flow, and shareholder structures. Analysts are closely monitoring upcoming economic data and the potential for further market adjustments.