FX.co ★ Turkish Stocks Hover Near Record Highs

By late December, Turkey's BIST 100 stock index was hovering above 11,300, nearing its all-time high of 11,530—a level that had been tested several times since it was initially reached in late August. This movement reflects ongoing market evaluations of Turkey's uncertain economic outlook and its implications for key companies. The Turkish government announced a 27% increase in the minimum wage for the upcoming year, in line with market expectations but falling short of the current inflation rate of 31%. The country's primary equity index was projected to rise by 14% for the year, receiving robust support from the banking sector. Both retail and institutional investors were actively acquiring assets to hedge against rampant inflation and the declining value of the lira. Additional positive factors included the national judiciary's decision to dismiss the case against opposition party politicians, contributing to market stability. Furthermore, Aselsan's stock was expected to surge by 210% this year, driven by strong demand from NATO defense companies. Despite these positive developments, the local currency's 18% depreciation against the US dollar resulted in a challenging year for Turkish equities when assessed in dollar terms.