Pricing Amidst Uncertainty

The votes coming out of a ballot box do not guarantee any political formation. Quite radical developments must occur so that the will of the people shift to another direction. Therefore, I suggest that everyone keep their expectations at a reasonable level for the second round of elections. Remember, by casting their votes, people have their voices heard. We should respect the decision of the people. That is the primary rule of democracy.


There are still concerns that the government, if it wins, will continue to keep the same economic model. There is a serious gap between the choice of the people and that of the markets. While the People’s Alliance won the majority in the Parliament, it is observed that major parties are losing their voters. Apparently, a significant majority of citizens believe that the current problems can be solved by the People’s Alliance.


Meanwhile, the government keeps introducing new regulations on banking and finance. It looks like the regulatory authorities, which have been trying to balance things out for months, will continue to do it until 28 May. Last week, banking regulators provided the reason behind the loan limitations: “Funds were wasted and abused in previous loan campaigns, so we decided to be more selective this time.”


In order to ensure growth, it is necessary to provide businesses funds for their projects as well as for their daily operational needs. I don’t think there’s much to be done about this in the coming 15 days before the second round. Nevertheless, some promises, other than monetary issues, can be put into effect in the meantime, such as the EYT (elimination of age requirement for retirement) pension scheme.


I expect that the BIST 100 index will continue to decline in a more moderate manner and we will see regression after slight upward trends. People can get used to both the good and the bad, but uncertainty is the worst. It seems that the unrest in the country will not go away for a while, which is not good for the markets at all.