FX.co ★ Turkish Stocks Surge on CHP Case Dismissal

Turkey's BIST 100 index experienced a significant rally of 4%, surpassing the 11,000 mark on Friday, following favorable developments in Turkish asset classes. The boost came after the judiciary dismissed charges against the country's main opposition party, the CHP. This decision not only provided reassurance to investors about the judiciary's partial independence from President Erdogan but also alleviated political risk concerns stemming from the arrest of Istanbul's mayor, Imamoglu, prior to his anticipated Presidential bid announcement in March—a development that led to a $2 billion capital outflow from local markets. The banking sector, in particular, saw substantial gains, with Garanti Bankasi surging by 13% and KOC climbing by 17% over the week. Additionally, the defense sector contributed positively to the BIST 100's performance, as geopolitical tensions in Europe prompted NATO countries to boost military expenditures. Aselsan's stock notably exceeded TRY 210, representing a remarkable 190% increase since the beginning of the year.