Turkey and Frontier Stocks: BIST 100, PSX, TASE, Merval — 2026-09-17
Turkish equities suffered their sharpest daily drop in four months, falling over 5% amid a liquidity crisis that forced regulators to close 130 investment funds. Meanwhile, Argentina's Merval rebounded in New York despite country risk hitting a monthly high, and Pakistan's KSE-100 faced continued selling pressure driven by regional geopolitical tensions.
Turkey and Frontier Stocks: BIST 100, PSX, TASE, Merval — 2026-09-17
Top developments
Turkey’s Fund Crisis Triggers Sharpest BIST Drop Since May
On September 16, the Borsa Istanbul (BIST) 100 index closed down 5.54% at 13,122.58 points, marking its steepest decline since May 2026. The selloff was triggered by an asset manager’s failure to meet redemption requests, which sparked broader liquidity concerns and caused investors to withdraw up to $1 billion from Turkish funds in a single day. In response, Turkey’s securities regulator ordered the closure of 130 investment funds and blocked trading for seven asset managers on Thursday, September 17.
Financial Stability Committee Meets as Turkish Markets Stabilize
Following the Wednesday crash, the Financial Stability Committee convened urgently under Finance Minister Mehmet Şimşek to assess market conditions. The committee announced that there was no structural risk in the markets and pledged to apply necessary measures to ensure stability. By Thursday, September 17, the BIST 100 began to recover, opening with a 1.32% drop but rising to gain 1.08% in the first half of the day, reaching 13,263.95 points.
Argentina’s Merval Rebounds While Country Risk Hits Monthly High
Argentina’s S&P Merval index rose 1.1% on September 17, with Argentine ADRs in Wall Street gaining up to 6%, led by energy and agricultural stocks like Cresud. Despite the equity rally, the country’s risk premium (EMBI+) climbed to 515 basis points, its highest level of the month, reflecting ongoing investor caution regarding fiscal policy and debt sustainability. The peso remained stable at 1,506 per dollar, while the central bank purchased $9 million to support reserves.
Pakistan’s KSE-100 Slides Amid Middle East Tensions
The Pakistan Stock Exchange (PSX) KSE-100 index fell by 1,371 points on September 16, continuing a downtrend driven by heightened tensions in the Middle East. Earlier in the week, the index had already dropped approximately 1,500 points due to fears over potential disruptions to oil supplies via the Strait of Hormuz. This geopolitical risk premium has overshadowed domestic economic data, including a reported 13% increase in the trade deficit for August.
Local view
In Turkey, BBC Türkçe highlighted the government's emergency response, noting that the Financial Stability Committee's statement aimed to calm panic after the "structural risk" narrative emerged. Yeni Birlik emphasized that the 5.54% drop was the strongest daily decline in four months, surpassing previous corrections and triggering a wave of stop-loss sales across banking and holding stocks. In Argentina, Infobae pointed out that while local equities rallied, the disconnect with the rising country risk indicates investors are hedging against macroeconomic volatility rather than betting on immediate stability.
Context & numbers
- BIST 100: Closed at 13,122.58 (-5.54%) on Sept 16; opened Sept 17 at 12,948.83 (-1.32%) before recovering to +1.08% mid-day.
- Fund Outflows: Approximately $1 billion withdrawn from Turkish investment funds in one day, prompting regulator intervention.
- CBRT Policy: The Central Bank of Turkey held interest rates steady at 37% on September 10, citing decelerating inflation trends despite energy price risks.
- Foreign Flows: Foreign investors returned to Borsa Istanbul in the week ending Sept 11, buying $277.7 million in equities after a $647.6 million sell-off the previous week.
- Merval & Risk: Merval closed at 3,079,779 (-0.16%) on Sept 16; Country Risk (EMBI+) hit 515 bps on Sept 17.
- KSE-100: Dropped 1,371 points on Sept 16; August FDI fell ~80% YoY, and trade deficit rose 13%.
On the radar
- TCMB Monetary Policy: Investors are watching for any shifts in the CBRT's stance following the fund crisis, though rates were just held at 37%.
- Argentina Budget 2027: The City of Buenos Aires is analyzing the proposed 2027 budget, which targets 4% GDP growth and 18% inflation, with a projected exchange rate of $1,847.6 per USD.
- Israeli Market Holidays: Note that TASE trading hours and holidays may affect regional liquidity flows, especially during upcoming Jewish High Holy Days.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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