Stocks in Istanbul drop by 2% following Israeli attacks on Damascus
In a surprising turn of events, the Turkish stock exchange, Borsa Istanbul, experienced significant losses on Wednesday, as growing fears of regional instability prompted major sell-offs. The Israeli airstrikes on Syria's Ministry of Defense compound in Damascus may have contributed to this downturn, making Borsa Istanbul the only major exchange pricing in the event of the attacks.
The BIST 100 index in Turkey fell by over 2%, reaching 10,092.36 points at 2:10 p.m. local time (GMT+3), narrowing its losses from the day's peak. Banking stocks led the losses in the Turkish stock exchange, reflecting investor concerns about the economic stability of the region.
Meanwhile, global markets remained relatively stable. The U.S. trading session saw the Dow Jones rise 0.1%, reaching 44,077.29 points, while the S&P 500 also rose 0.1% to 6,250.78 points. The Nasdaq Composite remained flat at 20,680.96 during the initial trading period.
Interestingly, the Tel Aviv Exchange's benchmark gained over 1.2% to 6,325 points, despite the airstrikes in Syria. This suggests that the regional instability may have had a more pronounced impact on the Turkish market.
The Turkish Central Bank may delay a potential interest rate cut at its July meeting due to these concerns over regional instability. However, it's important to note that the exact reasons for Borsa Istanbul's significant losses on a specific day are not clear from the available data.
On a positive note, the UAE president is scheduled to visit Turkey on July 16 for High-Level Strategic Council talks, which could potentially bring some stability and confidence back to the Turkish market.
Goldman Sachs expects the US dollar to hit 45 against the Turkish lira in 12 months, indicating a potential continued volatility in the Turkish market. As the situation unfolds, investors will closely watch these developments and adjust their strategies accordingly.
[1] It's worth noting that a recent report indicates a modest gain in the BIST 100 Index on July 11, 2025, where it closed slightly higher by 0.26%, with half of the stocks increasing and half declining, but no mention of a significant loss or specific cause for a large decline. This suggests that the significant losses observed on Wednesday may not have been a regular occurrence in the recent past.
- The BIST 100 Index in Turkey, despite the significant losses on Wednesday, showed a modest gain on July 11, 2025.
- The Turkish market, particularly the banking stocks, experienced substantial losses on Wednesday as a result of growing regional instability concerns.
- The only major exchange pricing in the event of the Israeli airstrikes in Syria was Borsa Istanbul, leading to significant losses there.
- The UAE president's visit to Turkey on July 16 for High-Level Strategic Council talks could potentially stabilize and increase confidence in the Turkish market.
- Goldman Sachs predicts the US dollar will reach 45 against the Turkish lira in the next 12 months, a potential indicator of continued volatility in the Turkish market.
- The Israeli airstrikes in Syria may have had a more significant impact on the Turkish market, compared to the relatively stable global markets observed on the same day.
- The Turkish Central Bank might delay a potential interest rate cut at its July meeting due to concerns over regional instability. However, the specific reasons for the Borsa Istanbul's significant losses on a specific day are not clear from the available data.
