Turkish stocks ride a swell in investor confidence

• BIST 100 up 25% so far this year
• Finance and banking drive gains
• Ten straight weeks of increases

Turkey’s stock exchange is riding a wave of positive sentiment, with domestic and foreign investors seeing market opportunities due to improved economic metrics and newfound stability, analysts say. 

Borsa İstanbul’s blue-chip BİST 100 has gained more than 25 percent since the start of the year, with most other indices – including banking and the broader all-share index – rising between 22 and 26 percent over the past six weeks. 

The BİST 100 closed February 12 at a record high of 14,180, up more than 3,000 points since the opening bell on January 2.

The winning streak has in part been driven by banking and finance, with bank shares gaining almost 7 percent on February 12 and the financial sector index up 3 percent. 

The strong run so far carries on from late last year, with gains posted for 10 straight weeks, while the blue-chip index has climbed 43 percent over the past 12 months.

A number of factors are aiding the momentum, according to İris Cibre, markets analyst and founder of Phoenix Consultancy.

With expectations that the US dollar will continue to lose value, foreign investors are once again eyeing developing markets, she told AGBI, while recent economic reforms also bear fruit.

“They see Turkey as stable, with orthodox monetary policies not being subject to political intervention, and more interest rate cuts in the future despite some issues with inflation, thus being more reliable,” Cibre said.

Further reading:

• Credit ratings agencies issue mixed messages on Turkey
• Turkey ends 2025 with stronger economy despite high inflation
• Carry trade investors in Turkey undeterred by rate cuts

Even cost-of-living concerns could be easing with the central bank releasing its first inflation outlook for 2026, forecasting consumer-price growth at between 15 and 21 percent this year. That represents a further cooling from the 2025 year-end figure of just under 31 percent. 

Market optimism is also being driven by Turkey’s improved ties with its neighbours, and with the Trump administration; the return of the European Investment Bank to Turkey after a six-year break; and a spate of joint energy research and development partnerships with the likes of Chevron and BP, Cibre said. 

She voiced confidence that the market will gain further in the short to medium term, with a move above 15,000 points “potentially not that far off”.