Erdogan and Simsek warn against manipulation, down the stock market

Turkish stocks lost a whopping 2.67% in Friday’s trading, as President Erdogan and economy czar Simsek took cracks at speculation.  Addressing the participations in the 150th year jubilee of the Istanbul Stock Exchange, the president largely addressed the attractiveness of Istanbul as a regional finance hub and the potential in Turkey’s still fledgling capital markets.


Yet, Erdoğan cautioned against the influence of “politician and economist greedheads who manipulate the market,” urging the Capital Markets Board (CMB) and Borsa Istanbul stakeholders, particularly those involved with the main BIST-100 index, to be more sensitive.

The president argued the impact of speculative narratives on investors’ sentiments, particularly during election periods. Drawing a comparison with developed countries, he noted that “denigrating the capital market for political gains is not a norm,” emphasizing the need for responsible discourse.


“Financial liberalization, free foreign exchange regime and integration with the global economy have been our fundamental principles during our period in power,” Erdoğan said, reflecting on Türkiye’s perceived liberation of its stock exchange from what he referred to as the “grip of casino capitalism”, appears to have caused great consternation in the stock market, where prices are largely determined by high net worth individuals who at times form “syndicates” to speculate in one stock or the other.

Taking the podium after the president, Finance and Treasury Minister  Şimşek acknowledged the existing gap between Borsa Istanbul and similar international stock exchanges, and stressed that the BIST is a vital platform for capital markets.


“It is not a playground. Therefore, the [supervisory]  efforts made by the Capital Markets Board (SPK) will be even more effective in the period ahead,” he noted.


Rumors of large scale manipulations by syndicates of unscrupulous investors run rampant among retailers, who have flocked to the stock market in millions and largely invest in IPOs.

Turkish stocks are finally receiving interest from global fund managers, who were net buyers according to data sovereign the last two weeks.  However marginal prices are still determined by retailers. Stocks are already under pressure as TL deposit rates soared past 50% according to latest Central Bank data covering the week ending on 15 December.


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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and and has contributed to the financial daily Referans and the liberal daily Radikal.