The Turkish lira slipped 0.5% to stand at 19.70 against the US dollar, a record low. The BIST-100 closed down 6.1% while its banking sub-index finished the day 9.2% lower, following confirmation that the election will have to be decided in a runoff between Erdoğan and his main opponent, Kemal Kilicdaroglu. The sharp stock market fall prompted the Istanbul exchange to halt trading briefly. “An opposition victory looks to have become less likely and this will disappoint investors hoping for a return to orthodox economic policymaking and a more credible commitment to tackling Turkey’s inflation problem,” Liam Peach, senior emerging markets economist at Capital Economics, said in a note. ![]() Turkey’s benchmark BIST-100 index sank as much as 6.4% in pre-market trade after Sunday’s election in which President Recep Tayyip Erdoğan performed better than polls suggested, tallying about 49.5% of the vote to the opposition’s 44.9%. They sent stocks tumbling Monday and pushed the value of its currency down to a new record low against the US dollar. Investors are nervously awaiting the outcome of Turkey’s presidential race in a runoff vote on May 28.
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