Turkey and Frontier Stocks: BIST 100, PSX, TASE, Merval — 2026-09-05

Top developments

Turkey's BIST 100 struggles to hold 14,000 points amid inflation wait

The BIST 100 index experienced significant volatility this week, dropping 1.25% on one session and 0.84% on another, dipping below the psychological 14,000-point level to close at 13,932.46 points on September 3. However, the index recovered slightly to close higher by 0.57% on September 4, signaling potential stabilization. Market participants remained cautious ahead of the release of August inflation data, a key indicator for the Central Bank of the Republic of Türkiye's (CBRT) next policy move. The lira remained relatively stable against the dollar during this period as the CBRT maintained its tight monetary stance.

1 sources

borsatek.com

BIST 100 haftayı yükselişle tamamladı

Argentina's Merval rebounds after worst month since February

Following a difficult August where the Merval index fell 7.8%, Argentine stocks staged a rebound in early September, with the index rising over 2% to recover the 3 million point level. On September 5, the S&P Merval continued its upward trend, gaining more than 2% while country risk (EMBI) dipped below 500 basis points for the first time in weeks, settling around 490–500 points. Dollar-denominated bonds also gained approximately 1% on average, reflecting improved sentiment despite ongoing peso depreciation. The peso slipped slightly to 1,513 per dollar in early September but stabilized around $1,530 at the Banco Nación.

Pakistan KSE-100 rallies despite regional tensions

Pakistan's benchmark KSE-100 index saw a surge of approximately 950 points in a single day (reported around September 3), driven by renewed investor interest. This rally followed a previous day's decline of over 1,000 points attributed to US-Iran geopolitical tensions. Despite a "shutter down" strike affecting some business activities, the index closed higher by 153.09 points at 174,929.68, indicating resilient market fundamentals. The market had previously posted a 0.3% week-on-week gain ending August 28, setting a stable baseline for September's volatility.

Israel's TA-35 remains stable; no major weekly shifts reported

Specific daily close data for Israel's TA-35 index was not prominently featured in recent high-profile news cycles compared to Turkey and Argentina. General market portals like Globes and TradingView indicate ongoing tracking of the index, but no significant single-day moves exceeding typical volatility were highlighted in the past 7 days' major headlines. Investors continued to monitor foreign holdings and shekel stability, though no major policy announcements or market shocks were reported in the curated sources for this period.

Local view

Turkey: Local media outlets like Türkiye Gazetesi emphasized the psychological importance of the 14,000-point level, noting that sales pressure intensified when the index broke below this threshold. BorsaninGündemi reported that the BIST 100 showed signs of "recovery" on Friday (September 4), reversing an early morning negative opening to end the day up nearly 1%, suggesting short-term buying interest.

Argentina: Infobae reported that the rebound in Argentine stocks was led by bank shares, which drove the Merval's 2.5% gain earlier in the week. El Cronista noted that while stocks struggled initially, sovereign bonds resisted Wall Street's volatility, helping to keep country risk under pressure.

Pakistan: Urdu-language media such as Business Recorder and Express highlighted the disconnect between street protests ("shutter down") and market performance, noting that the KSE-100 gained ground even as physical commerce was disrupted. MM News described the 950-point rise as a cause for investor joy, marking a strong return of confidence.

Context & numbers

Note: CBRT raised end-2026 inflation forecast to 28% from 26% in late August, maintaining a hawkish tone.

On the radar

• Turkey Inflation Data: Markets are closely watching the August CPI release in Türkiye, which will influence CBRT's next decision on interest rates (currently held at 37%).
• Argentina Country Risk: Traders are monitoring whether the EMBI can sustainably stay below the 500 basis point threshold, a key signal for international bond investors.
• Pakistan Geopolitics: Continued US-Iran tensions remain a primary driver of short-term volatility in the PSX, with sudden sell-offs observed during heightened news flow.