Index contract starts the week with a decline in VIOP

The December-dated contract based on the BIST 30 index at the Borsa Istanbul Derivatives and Options Market (VIOP) started the week with a 0.2 percent decline at 9,496.75 points.

The February-dated index contract traded at 9,496.75, which is 0.2 percent below the previous normal session close, during the opening session.

On Friday, the index contract followed a volatile course and completed the normal session at 9,514.00 points, 0.1 percent below its previous close. In the evening session, the index contract fell by 0.6 percent to 9,453.75 points as volatility increased following the resignation of Hafize Gaye Erkan.

Analysts stated that global equity markets are following a mixed course as concerns about a recession in the US economy have decreased significantly, while forecasts regarding the date when the US Federal Reserve (Fed) will begin interest rate cuts have been postponed.

On the other hand, following the resignation of Hafize Gaye Erkan from the presidency of the Central Bank of the Republic of Turkey (TCMB) for personal reasons on Friday evening, Deputy Governor Fatih Karahan was appointed in her place.

Minister of Treasury and Finance Mehmet Şimşek stated that they have full confidence in and support for TCMB Governor Fatih Karahan and his team.

In an announcement made over the weekend following his appointment as governor, TCMB Governor Fatih Karahan emphasized that they are determined to maintain the necessary monetary tightness until inflation falls to levels consistent with their targets, stating, "We are closely monitoring inflation expectations and pricing behaviors. We will absolutely not allow any deterioration in the inflation outlook."

Furthermore, it was announced yesterday that the TCMB will apply interest to Turkish Lira (TL) required reserves in order to strengthen the monetary transmission mechanism, increase the share of Turkish Lira deposits, and support the transition from Foreign Currency Protected Deposit (KKM) accounts to TL deposits. The deadline for foreign currency-converted KKM accounts was also extended.

Analysts noted that inflation data will be monitored domestically today, while service sector and composite Purchasing Managers' Index (PMI) data will be followed globally, and they recorded that from a technical perspective, the 9,500 and 9,600 levels are resistance, while 9,400 and 9,300 points are support positions for the index contract.

Economists participating in the AA Finance Inflation Expectation Survey estimate that the CPI will increase by 6.84 percent in January. According to the average of economists' January inflation expectations, annual inflation, which was 64.77 percent the previous month, is calculated to rise to 65.07 percent.

News Source: AA