The BIST 100 stock index traded above 14,270 in April, hovering near record highs and extending its strong year-to-date rally despite a mixed macroeconomic backdrop for equities. Shares of Aselsan, by far the heaviest-weighted constituent of the index, climbed above TRY 400 for the first time on record this month, doubling in value over just the past four months. The company has broadly tracked gains in the wider NATO defense sector amid persistent concerns over potential escalation of the conflicts in the Middle East and Ukraine.
Banks also advanced, outperforming most other sectors as Turkish investors continued to favor bank stocks as a hedge against high inflation and ongoing currency depreciation. The Central Bank of the Republic of Türkiye (TCMB) kept its policy rate unchanged, consolidating its recent hawkish shift in response to this year’s surge in energy prices. However, the suspension of reverse-repo auctions has continued to push overnight rates higher across the financial system, limiting further upside for equities.
