Borsa Istanbul plunges after MSCI warning
Borsa Istanbul opened the final trading session of the week with sharp losses following a warning from global index provider MSCI regarding Türkiye.
The BIST 100 index fell 1.44% at the opening on Friday, October 16. Selling pressure intensified after MSCI announced that it would freeze certain index changes involving Turkish equities until further notice and warned that Türkiye's emerging market classification could be reassessed in the future.
MSCI cited concerns over potentially coordinated trading by certain investment funds in stocks with low free-float ratios as the reason for its decision. The index provider stated that if sufficient progress is not made in market transparency, oversight, and enforcement mechanisms by June 2027, it could initiate a review of Türkiye's classification, potentially considering a downgrade to frontier market or standalone market status. Although Türkiye's current classification remains unchanged, the announcement increased selling pressure on Borsa Istanbul.
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