Strong reaction from the Stock Exchange following inflation decision

Borsa İstanbul experienced a sharp rise after the Turkish Statistical Institute (TÜİK) announced the July inflation data. According to TÜİK data, the Consumer Price Index (CPI) increased by 2.06 percent monthly in July, while it declined to 33.52 percent on an annual basis.

These figures came in below market expectations. Economists participating in the AA Finance expectation survey had predicted that the CPI would increase by 2.34 percent monthly and that annual inflation would fall to the 33.90 percent level.

BIST 100 AT HIGHEST LEVEL SINCE MARCH

The inflation data, which was below expectations, increased buying appetite on Borsa İstanbul. The BIST 100 index, which started the day with a 0.56 percent increase, initially saw 10,807 points, but climbed rapidly to 10,926 points following the data. Thus, the index reached this level for the first time since March 19, testing the peak of approximately 4.5 months.

BANKING AND HOLDING STOCKS SURGE

The rise in Borsa İstanbul was felt more significantly, especially in banking and holding stocks.

The banking index, which started the day with a 0.75 percent increase, rose to over 3.5 percent during the day following the inflation data. Similarly, the holding index started the morning with a 0.52 percent rise and then gained up to 1.01 percent.

TECHNICAL OUTLOOK: 11,000 AT RESISTANCE, 10,600 AT SUPPORT

According to analysts, from a technical perspective, the 10,900 and 11,000 point levels are at resistance, while the 10,700 and 10,600 point levels are at support for the BIST 100 index. If the positive atmosphere created by the inflation data continues, the index is expected to maintain its upward movement.

News Source: 12punto