Indexes on Borsa Istanbul

We have all heard of indices like BIST30, BIST100, and GIDA in Borsa Istanbul. Indices are sets that allow us to measure the performance of stocks based on a specific sector, price, or market value in the stock market. With numerous indices in our stock exchange, I will introduce you to the most popular and well-known indices. Let's get to know the indices in our stock exchange.

What is BIST100 Index?

BIST100 represents the top one hundred companies in terms of market value and trading volume in the stock market. Investors generally use this index to track and analyze the overall trend of the stock market. Just like stocks have codes, indices also have codes, and the code for BIST100 is XU100.

What is BIST30 Index?

BIST30 represents the top thirty companies in terms of market value and trading volume. Investors usually consider BIST30 to measure the performance of large companies. The code for BIST30 is XU30.

What is Banking Index?

Investors use this index to measure and analyze the overall performance of stocks in the banking sector. The code for the Banking index is XBANK. Example: Akbank, Garanti, İş Bankası.

What is Food Index?

Investors use this index to measure and analyze the performance of stocks in the food sector. The code for the Food index is XGIDA. Example: Göknur Gıda, Eksun Gıda, Dardanel, Kayseri Şeker.

What is IPO Index?

One of the relatively new indices in our stock exchange is the IPO index, which, as the name suggests, is determined based on the price and volume performance of newly listed companies. The code for the IPO index is XHARZ. Example: Izdemir Enerji, Adra Gayrimenkul, Ebebek.

What is Industrial Index?

Investors use this index to measure and analyze the performance of stocks in the industrial sector. The code for the Industrial index is XUSIN. Example: Ereğli Demir Çelik, Astor Enerji, Bosch Fren.

What is Electricity Index?

Investors use this index to measure and analyze the overall performance of stocks in the electricity and energy sector. The code for the Electricity index is XELKT. Example: Aksa Enerji, Zorlu Enerji, Odaş Elektrik.

Attention!

Some companies may not be found in the index we expect based on their names. For example, Astor Enerji is not in the XELKT index but is in XUSIN.

What is Transportation Index?

Investors use this index to measure and analyze the overall performance of stocks in the transportation sector. The code for the Transportation index is XULAS. Example: Türk Hava Yolları, Pegasus Hava Yolları, Gürsel Taşımacılık.

What is Technology Index?

Investors use this index to measure and analyze the overall performance of stocks in the technology sector. The code for the Technology index is XUTEK. Example: Logo Yazılım, Aselsan, Matriks Bilgi Dağıtım.

Markets on Borsa Istanbul

Companies in the stock market trade in markets categorized by Borsa Istanbul based on predefined criteria. In our stock exchange, there are 7 markets: Star Market, Main Market, Secondary Market, Watchlist Market (WL), Structured Products and Fund Market (SPFM), Qualified Investor Transaction Market (QITM), and Pre-Market Trading Platform (PMTP). It is crucial for us to know in which market the company or stock we invest in is listed. Therefore, understanding the markets in the stock exchange is essential. Let's now examine these markets one by one.

Star Market

Star Market is where shares of companies with a market value of 300 million TL and above, when they first enter the stock exchange, are traded.

Main Market

Main Market is where shares of companies with a market value between 75 million TL and 300 million TL, when they first enter the stock exchange, are traded.

Secondary Market

Secondary Market is where shares of companies with a market value between 45 million TL and 75 million TL, when they first enter the stock exchange, are traded.

Watchlist Market (WL)

According to the regulation, the Watchlist Market is where companies removed from the Star Market, Main Market, and Secondary Market are listed. Investing in a company in this market can be risky.

Structured Products and Fund Market (SPFM)

This market is where investment fund unit certificates, warrants, certificates, ownership-based lease certificates, real estate certificates, real estate investment funds, and venture capital investment funds can be traded. Since there are no stocks (shares) in this market, it is not of much interest to us.

Qualified Investor Transaction Market (QITM):

It is created to ensure that shares issued for sale to qualified investors without being publicly offered and other capital market instruments deemed appropriate by the Board of Directors can only be traded among qualified investors. Those who are not qualified investors cannot trade in this market. This market is not of much interest to us as we are not qualified investors.

Pre-Market Trading Platform (PMTP)

This market is where shares of publicly traded companies that are not traded on the Exchange are traded, and companies decided by the Exchange to trade on this Platform. It is possible to invest in companies in this market, but it involves very high risk, like playing with fire.

What is KAP?

KAP, an acronym for the Public Disclosure Platform in Turkish, is developed by the Central Securities Depository and Central Registry Agency. Investors use KAP to follow news about the companies they invest in, such as financial statements and new business relationships. KAP is a wonderful platform that allows you to be self-sufficient in terms of information. You can download its mobile application to your phone or access the platform through the web. By adding your followed companies to favorites on KAP, you can quickly and directly obtain news such as new business relationships, dividend announcements, and capital increase news. Additionally, you can explore the general business activities and fields of the companies you are interested in or have invested in through their activity reports available on KAP. You can access this report by selecting your company on KAP. This report can provide valuable insights into your investments. In conclusion, every investor must have KAP's mobile application on their phone and should directly track their stocks from here.

Measures Applied to Companies (Shares)

Investors introduced to the stock market through Borsa and IPOs encounter measures that have been in place for a long time on the stock market and are implemented when deemed necessary. Although many people refer to these measures as prohibitions, I prefer to call them precautions. The reason is that these precautions are implemented by the Capital Markets Board (SPK) to protect investors. Yes, I know you might say, 'Will SPK really think about us?' but in a way, they might think about us while implementing these precautions because these measures are applied to ensure the proper and healthy functioning of the market. Let's now take a look at the precautions implemented by SPK.

Gross Settlement

Gross Settlement is the inability to sell a purchased stock on the same day. If an investor buys shares of a company where Gross Settlement is applied, they can sell these shares at the earliest on the next day. The reason for implementing this precaution is to prevent unhealthy price movements created by daily trading of stocks by traders or institutions. The current list of stocks subject to Gross Settlement is available on the Borsa Istanbul website.

Circuit Breaker

Circuit Breaker refers to an emergency measure that temporarily halts buying and selling on the stock exchange. This measure is taken to prevent panic buying and selling. Circuit Breaker is applied when the BIST100 index, representing the largest 100 companies on Borsa Istanbul, falls by the first threshold of 5% or more. It is also applied at the second threshold of 7% or more.

Short Selling Ban

Short selling is the process where the seller sells shares they do not own, and at the end of the maturity period, they deliver the shares they sold to the buyer. It is a method used by investors who believe that the shares will decline. In stocks where short selling is prohibited, naturally, short selling cannot be done, and there is less pressure on the stock.

Margin Trading Ban

In our stock market, investors can trade using credit, and daily interest is paid on this credit. Margin trading is not allowed in stocks where there is a margin trading ban. I recently experimented with margin trading out of curiosity and did not get good results. Nobody recommends margin trading, including experts around me. It is always better to trade with the money you own.

Single Price

Another precaution implemented by SPK in the stock market is Single Price, where the price of a stock can only change three times in a day in three sessions. In other words, there is no continuous trading. The orders you place are matched during the session times, resulting in a final price.