Shares recorded significant losses Turkish construction companiesto in the wake of Erdogan’s big defeat in yesterday’s municipal elections.

Shares in state-owned AEEAP Emlak Konut GYO AS fell 9.8% to 8.99 pounds, posting their biggest losses in a year. The fall in the stock of Emlak Konut GYO AS, previously headed by Murat Kurum (Erdogan’s mayoral candidate in Sunday’s election) led the AEEAP index of the Istanbul Stock Exchange (in which 48 shares participate) down 4.5%.

Kurum in his pre-election promises had also mentioned the construction of 650,000 new houses, but Ekrem Imamoglu prevailed with a difference of 11 percentage points, extending his term in the mayoral office for another five years.

The election result negatively affected the cement industries as well, with Bogazici Beton Sanayi Ve Ticaret AS shares down 10%. The stock of Akcansa Cimento AS also recorded losses of more than 6%.

“Such reactions are psychological and short-term, coming mainly from small investors,” said Haydar Acun, CEO of Marmara Capital. “Perhaps there were expectations that a positive result for the ruling party would provide support to the construction industry,” he added.

The Istanbul Stock Exchange’s main index was earlier down 1.7%, with 84 shares declining and 16 moving higher.