Turkey's benchmark stock index hit an all-time high during the first half of the trading day Wednesday, with the lira also rallying after a regulator relaxed bank limits on swaps and other transactions to support the currency.

The Borsa Istanbul Stock Exchange's BIST 100 index hit 1,258.21 points during the first half of the trading day, an all-time high.

Following an upward trend, the index gained as much as 1.13% to stand at 1,257.00 points as of 1 p.m. local time, an increase of 13.99 points compared to the previous close.

The banking index and holding index gained as much as 1.9% and 1.32%, respectively in the first half of the day.

Analysts said buyouts accelerated following remarks on Tuesday by the new Treasury and Finance Minister Lütfi Elvan, who said the country would focus on a market-friendly transformation program that includes micro reforms while strengthening macroeconomic stability.

The index ended Monday up 3.32% at 1,231.54 points to hit the highest close over the past nine-and-a-half months.

It rose 39.58 points from 1,191.96 points at Friday's close. On Monday, the BIST 100 hovered between 1,211.16 and 1,235.30.

The stock market has also grown with the impact of the Turkish lira gaining ground following the country's recently appointed Central Bank of the Republic of Turkey (CBRT) Governor Naci Ağbal's statements on price stability and communication.

The lira jumped 1% and strengthened to 8.074 against the dollar before settling at 8.088 at 2 p.m. local time. The lira has gained about 5% so far this week.

Analysts said the Banking Regulation and Supervision Agency’s (BDDK) move to raise limits on banks' lira sell-side swaps, forwards and options amid a new step toward normalization would further support the banking sector.