How did Borsa Istanbul perform in the first quarter of the year?

The first quarter of 2025 concluded with fluctuating trends and notable sectoral divergences on Borsa Istanbul. Although the BIST 100 index experienced gradual increases in January and February, it relinquished those gains due to a sharp sell-off in March, resulting in a decline of approximately 3.6% year-to-date. Political uncertainties emerging in mid-March triggered the most severe weekly drop since the 2008 global financial crisis, with a staggering drop of 16.6% in just one week. The index hit circuit breaker limits twice on March 21 and ended the week with significant losses, though it partially recovered in the last week of the month.

Examining sector index performances in the first quarter, the factoring sector stood out positively, while bank stocks drew negative attention. The factoring index surged nearly 65% from the beginning of the year to the end of March, showcasing the strongest performance among all sectors. In contrast, the financial index, which includes banks, insurance, and holdings, saw a decline of over 6%, primarily due to steep sell-offs in banking stocks.