Domestic markets in Türkiye have managed to maintain the positive momentum they built at the start of the year during the first quarter, with Turkish equities emerging among the best-performing global markets despite pressure from geopolitical tensions in the Middle East.
The BIST 30, which tracks the largest and most liquid companies on Borsa Istanbul Stock Exchange (BIST), rose 18.77% in the first quarter after ending 2025 at 12,223.61 points and climbing to 14,518.03 points by the end of March.
That performance placed the index among the world's top 10 best-performing benchmark indices during the quarter.
In dollar terms, the BIST 30 also gained 14.7%, making it one of the strongest-performing stock indices globally at a time when many major markets in the United States, Europe and Asia posted declines.
The broader BIST 100 also advanced strongly, rising 13.6% in the first quarter to end March at 12,790.98 points, compared with 11,261.52 points at the end of last year.
The BIST 100 surged 22.9% in January alone, recording its strongest monthly performance since November 2022.
Foreign investor inflows and continued reserve accumulation by the Central Bank of the Republic of Türkiye (CBRT) helped push the BIST 100 to a record high of 14,532.67 points in February.
Investor sentiment was also supported by continued guidance from policymakers that the disinflation process would remain firmly in place.
The conflict in the Middle East, triggered by attacks by the United States and Israel on Iran and subsequent Iranian retaliation, created heavy selling pressure across global markets in March.
The rise in geopolitical risks is estimated to have wiped about $14 trillion from the value of global financial markets over the past month.
Concerns over disruption to the Strait of Hormuz, a key chokepoint for global energy supplies, pushed oil prices higher and altered inflation expectations as well as the outlook for central bank policy worldwide.
Markets grew increasingly concerned that major central banks, led by the U.S. Federal Reserve (Fed), could adopt a more hawkish stance in response to higher energy prices and inflationary pressures.
The stronger inflation outlook boosted the dollar against other currencies, while global bond markets also came under pressure.
The yield on the benchmark 10-year U.S. Treasury note climbed to 4.49%, its highest level since July 2025, while the dollar index remained firmly above 100.
Against this backdrop, Türkiye’s economic management was seen as relatively resilient thanks to swift policy action and an ability to respond quickly to global volatility.
The CBRT introduced new measures aimed at improving Turkish lira liquidity conditions in the banking system.
The bank launched foreign exchange-backed lira swap transactions in order to provide banks with greater flexibility in managing lira liquidity.
The move is intended to limit volatility in both credit and interest rates, while also easing pressure on the lira.
Officials expect the measure to prevent a tightening in lira liquidity, support banks facing funding pressures and contribute to more balanced lending conditions.
The measure is also viewed as important for both supporting liquidity in the banking sector and strengthening foreign exchange reserves, as the central bank effectively injects lira liquidity by purchasing foreign currency from banks in exchange for lira.
