Istanbul Stock Exchange

The Borsa Istanbul 100 index plummeted by over 6% to approximately the 4,490 level on Monday, before triggering a circuit break and paring losses to 2.6%, as investors digest the outcomes of the parliamentary and presidential elections.

 Preliminary results indicate that neither Erdogan nor his rival, Kemal Kilicdaroglu, obtained the necessary 50% of votes to secure victory. Erdogan received 49.5% of the votes, while Kilicdaroglu had 44.9%, with over 99% of ballot boxes counted, according to Anadolu agency. If these results are confirmed by Turkey's Supreme Election Board, a runoff round for the presidency between the two candidates will be held on May 28. 

Investors are closely monitoring the elections for further indications of future economic policies. The country has been grappling with persistently high inflation and a falling lira. Additionally, the BIST has experienced a significant decline of nearly 20% since the beginning of 2023.