Turkey's main stock index enters bear market, posts worst month since 2008
Borsa Istanbul's BIST-100 closed more than 20% below its May record, ending September down 16.65% — its worst month since 2008 — as a forced-selling fund crisis spread. The manipulation probe's suspect list hit 217, with 56 jailed.
Turkey’s main share index has officially entered a bear market after posting its worst monthly performance since 2008, as a selloff triggered by cash-strapped investment funds spread across the broader market, Reuters reported on October 1.
The BIST-100 closed down 2.79% on Wednesday — more than 20% below its May 11 record close, confirming bear-market territory. It ended September down 16.65%. The selloff accelerated on September 14 amid concerns over funds heavily exposed to thinly traded stocks, with analysts saying some funds were forced to sell liquid holdings to meet redemption requests, driving broader declines and triggering further withdrawals.
The Capital Markets Board (SPK) on September 17 ordered the liquidation of 131 funds managing more than $20 billion and serving 455,758 retail investors. Regulators have since widened their investigation into alleged market manipulation. Justice Minister Akin Gurlek said on Wednesday the number of suspects had risen to 217, with 56 jailed pending trial.
Smaller stocks were hit hardest: Istanbul’s index of companies outside the top 100 (.XTUMY) fell roughly 35% in September, its worst monthly performance in lira terms since its 2009 launch, while 15 constituents of the mid-cap (.XYUZO) index lost between 50% and 90% of their value, according to LSEG-compiled data. The blue-chip top-30 index fell less, closing September down 9.8%.
Sources
- Reuters: Turkey’s main stock index enters bear market, posts worst month since 2008 — https://www.reuters.com/world/middle-east/turkeys-main-stock-index-enters-bear-market-posts-worst-month-since-2008-2026-10-01/
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