Index contract starts the day flat on VIOP (March 7, 2024)

The April-dated contract based on the BIST 30 index on the Borsa Istanbul Derivatives Market (VIOP) started the day with a flat trend at 9,808.00 points today.

The April-dated index contract traded at 9,808.00 points in the opening session, just below the previous normal session close.

Yesterday, the index contract followed a bearish trend, finishing the normal session at 9,808.50 points, 0.5 percent below its previous close. The index contract continued its downward trend in the evening session, falling to 9,792.25 points.

Analysts stated that global equity markets followed a positive trend after US Federal Reserve (Fed) Chair Jerome Powell indicated that they would not rush to cut interest rates, but that it would likely be appropriate to do so "at some point this year," adding that eyes are now turned to the European Central Bank's (ECB) interest rate decision today.

On the other hand, as part of additional tightening steps to support the Central Bank of the Republic of Turkey's (TCMB) tight monetary policy stance, a decision was made yesterday to establish reserve requirements based on credit growth.

For the portion of loans determined by the Central Bank that exceeds the monthly 2 percent growth rate, the reserve requirement in TL will be held as blocked for 1 year.

In the summary published regarding the TCMB Monetary Policy Committee's meeting on February 22, it was stated: "The monetary policy stance will be tightened in case a significant and persistent deterioration in the inflation outlook is foreseen. The monetary transmission mechanism will be supported in case of developments in credit growth and deposit interest rates outside of what is foreseen."

Analysts noted that weekly money and bank statistics will be monitored domestically today, while the ECB interest rate decision and statements by ECB President Christine Lagarde, as well as a busy data agenda, will be followed abroad, adding that technically, 9,700 and 9,600 points are support levels for the index contract, while 9,900 and 10,000 points are resistance levels.

News Source: AA