MSCI Warns of Concrete Progress Needed for Turkish Markets

MSCI reiterated its concerns over free float ratios in Turkish markets, noting the Capital Markets Board's (SPK) new regulation. The organization announced it may initiate a consultation process if concrete progress is not made in this area. In its assessment, MSCI emphasized that low free float ratios in Turkey pose risks to market depth and liquidity. While the SPK's latest regulation was described as a positive step, MSCI stated it would closely monitor the impact of this regulation. The organization indicated that without concrete progress, it could move to a consultation process that might create further uncertainty for investors. This process could lead to a reassessment of Turkey's weight in MSCI indices. MSCI's warning signals that publicly traded companies and regulators in Turkey need to take faster and more effective steps to align with international standards. Market participants are closely watching the potential impact of these developments on foreign investor confidence. This is not investment advice.