Turkey's stock market fell sharply on Wednesday, as an asset management company failed to meet redemption requests, fueling market concerns about widespread liquidity pressure in the country's fund industry. The Istanbul Stock Exchange 100 Index once fell 5.7%, and the two-day cumulative decline widened to 6.9%, and is expected to record the biggest one-day decline since March 2025. All but one of the constituent stocks of the benchmark index fell, but then the index narrowed its decline to 3%. Investors made a net redemption of 55 billion lire from Turkish investment funds on Wednesday, according to financial data platform Fintables. The sell-off comes after Pusula Portfoy announced on Tuesday that some of its investment funds and money market funds were unable to meet redemption requests. Banu Kivci Tokali, founder and economist at BVeri Consulting, said: “Market concerns about the stability and liquidity of fund collateral are growing, which seems to increase the risk that other funds and companies may also face difficulties. It can be said that the intensification of loss of confidence in the industry has played an important role in the emergence of a wave of market sell-offs.”

Turkey's stock market fell sharply on Wednesday, as an asset management company failed to meet redemption requests, fueling market concerns about widespread liquidity pressure in the country's fund industry. The Istanbul Stock Exchange 100 Index once fell 5.7%, and the two-day cumulative decline widened to 6.9%, and is expected to record the biggest one-day decline since March 2025. All but one of the constituent stocks of the benchmark index fell, but then the index narrowed its decline to 3%. Investors made a net redemption of 55 billion lire from Turkish investment funds on Wednesday, according to financial data platform Fintables. The sell-off comes after Pusula Portfoy announced on Tuesday that some of its investment funds and money market funds were unable to meet redemption requests. Banu Kivci Tokali, founder and economist at BVeri Consulting, said: “Market concerns about the stability and liquidity of fund collateral are growing, which seems to increase the risk that other funds and companies may also face difficulties. It can be said that the intensification of loss of confidence in the industry has played an important role in the emergence of a wave of market sell-offs.”