- Turkey’s stock market has logged its worst two days since the global financial crisis of 2008 this week, with bank shares plunging and stop-loss halts activated after President Tayyip Erdogan shocked investors by sacking the central bank governor.
The fall in the main BIST-100 index on Monday was the largest since mid-2013, when a “taper tantrum” in response to the U.S. Federal Reserve’s announcement it would ease asset purchases in future rattled emerging markets including Turkey. Although the index briefly turned positive on Tuesday in high volatility following an initial dive, analysts said foreign investors were abandoning positions.
One of Erdogan’s economic advisors, Yigit Bulut, called the stock selloff a temporary speculative attack. Speaking on broadcaster Haberturk, he said Turks had sold $5.1 billion on Monday to profit from high exchange rates as the lira fell to near record lows following Agbal’s departure.