Turkish stocks fell significantly on Monday morning following the tightly contested election on Sunday. The results will likely lead to a runoff between incumbent President Recep Tayyip Erdogan and opposition leader Kemal Kilicdaroglu.
The Borsa Istanbul’s BIST 100 opened at a loss of more than 6% before recovering to an approximately 2.6% loss at around 6:40 a.m. ET, according to market data. The dramatic fall prompted regulatory authorities to temporarily halt trading, according to multiple reports.
Background: Sunday’s elections in Turkey ended with Erdogan and Kilicdaroglu both receiving more than 40% of the vote, according to the latest results. With neither achieving the more than 50% required for a victory in the first round, the country is likely heading to a runoff vote on May 28. Erdogan has been in power for 20 years, making him the longest-serving leader in the country's history.
Why it matters: The performance of the Turkish stock market could reflect investors’ concerns about Erdogan. Bank stocks in Turkey rallied significantly last week as investors bet on Erdogan losing, according to Bloomberg.
