Turkey's main stock index fell more than 3% on Friday after MSCI froze certain changes to its Turkey equity indexes. The index provider warned of a potential downgrade if the country does not make enough progress by mid-2027.
Turkey's main stock index fell more than 3% on Friday after MSCI froze certain changes to its Turkey equity indexes. The global index provider said it needed more time to assess market reforms.
MSCI also warned of a potential downgrade if sufficient progress was not made by mid-2027. The decision leaves Turkey's emerging-market status unchanged for now, but a future downgrade to frontier-market status could trigger selling by funds that track the MSCI Emerging Markets Index.
The freeze followed a crisis in Turkey's investment fund industry. Regulators last month ordered the liquidation of 131 funds that had reached more than $20 billion in assets over just three years.
The crisis pushed stocks into a bear market, and the main index recorded its worst month since 2008 in September. Turkey's equity market has also faced investor scrutiny over free-float calculations and suspected coordinated trading in some stocks.
Source: Investing.com
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