The Turkish Stock Exchange collapses over 6% – earlier recorded losses of up to 6.9%, causing temporary suspension of negotiation – and yields of 10 -year government bonds increased to the highest level this year After the arrest of Ekrem Imamoglupolitical opponent of the Turkish president Recep Tayyip Erdoganwhile the pound also records losses.

In particular, The Borsa Istanbul 100 index It slides by 6.72% to 10.078.35 points. In the meantime, Turkish pound It fell more than 5% against the US dollar, moving to historically low, according to Bloomberg. The 10 -year government bonds dropped, sending the yields of 175 basis points higher to 29.94%.

It is noted that the ImamogluMayor of Constantinople, was arrested at his home on Wednesday morning, the day after the cancellation of his university degree. This is a move that could prevent him from clashing with Erdogan in the next presidential election.

Political developments usually burden Turkish shares, as the country’s market is mainly dominated by domestic investors, who react in periods of volatility. Local investors hold about 62.5% of Turkish shares, according to the international agency.

‘Turkish assets are under strong pressure’said Piotr Matys, a senior analyst at In Touch Capital Markets. “For some investors it is also a reminder that President Erdogan intends to tighten his handle in power by trying to prevent his biggest political opponent from coming down to the presidential election to be held in 2028, although it is not excluded that there will be premature ballots.”

Political developments are interrupting the positive climate of global investors for the country’s assets, in the midst of bets that Turkey would be less affected by the volatility caused by trade wars. The best of the expected measurement of inflation in February, the reduction of interest rates and the hopes of closer links with the European Union had given a boost to enter the Turkish shares in a bull market earlier this month.