CMB Revises Free Float Ratio Calculation for BIST Indices

The BIST100 index fell 1.94% in the last session to 13,694. Although the RSI at 36.7 is approaching oversold territory, the MACD indicator remains below the signal line and in negative territory. Closing below the 20- and 50-day moving averages weakens the short-term outlook. The Capital Markets Board's (SPK) change in the calculation of the free float ratio could increase selling pressure, especially on stocks with low free float. The weakness in technical indicators and the uncertainty created by the news suggest that the index may continue its downward trend in the short term.

Technical indicators point to weakness: RSI at 38.6 in sell territory, MACD below signal line and negative, price below both 20-day and 50-day moving averages. A sharp 3.1% decline occurred in the last 24 hours. The CMB's change in the calculation of the effective circulation ratio may create short-term uncertainty and add additional pressure on the index. However, the RSI approaching oversold territory could trigger some bargain buying. Overall, the downtrend is expected to continue in the short term.