Turkish authorities detained 17 people on Tuesday suspected of causing "unusual movements" in Istanbul's stock market and engaging in manipulative actions in capital market instruments, media reported.
The suspects were detained as part of an investigation led by the Istanbul Chief Public Prosecutor's Office on charges of creating artificial fluctuations in the markets to secure unfair profits.
State broadcaster TRT Haber said the investigation was ongoing and that further detentions may follow.
The investigation came after unusual price and volume fluctuations in the Borsa Istanbul Stock Exchange (BIST) on Feb. 21. The probe followed complaints and was run concurrently with an investigation by the Capital Markets Board (SPK).
The benchmark BIST 100 Index plunged 3.4% during the afternoon session on Feb. 21, leading the exchange to implement an uptick rule on short-selling.
It managed to recover some of its losses but still ended the day at 9,602.16 points, down 2.1% from its previous close.
The index traded at 9,926.76 points, up 0.16%, at 2:45 p.m. local time on Tuesday.
The developments came days after JPMorgan said equity markets in Türkiye and Argentina could post returns of more than 20% this year, driven by policy reforms aimed at reducing inflation levels.
Its analysts said in a note Türkiye's ongoing path to lower inflation and lower interest rates could bolster its equities.
The BIST 100 index has traded at seven times its 12-month forward price-to-earnings (PE) ratio, as per JPMorgan estimates.
Having upgraded Turkish equities to "overweight" from "neutral" last month, JPMorgan says falling inflation and the rate-cutting cycle could further help the broader stock market.
In local currency terms, the BIST 100 index has risen about 8% in the last 12 months.
After interest rate cuts of 250 basis points each in December and January, the Turkish central bank's policy rate now stands at 45%, and economists expect rates to be lowered to 30% by the end of the year, which is in line with JPMorgan's forecasts.
