Turkey's Capital Markets Board Revises Fund Valuation Rules Ahead of MSCI Review

The XU100 index is approaching oversold territory with its RSI14 at 25, signaling potential short-term buying interest. However, the MACD and signal line remain in negative territory and continue their downward trajectory, indicating weak momentum. While the Capital Markets Board of Turkey's (SPK) revision of fund valuation principles for the MSCI category could boost foreign investor interest, its short-term impact is expected to be limited. The index is trading below its 20- and 50-day moving averages, reflecting a technically weak outlook. Therefore, with short-term direction remaining uncertain, a sideways trend is more likely than a sharp decline due to oversold conditions.

The news indicates that the valuation principles for funds in the MSCI category have changed. Such adjustments can generally increase confidence in the sector and create a positive perception in the short term. Technical indicators also support this view: the RSI at 60.6 is above the neutral zone, the MACD is above the signal line and positive, and the price is above both the 20-day and 50-day moving averages. The 4.9% rise in the last 24 hours suggests strong momentum. However, since the details of the regulation are not clear, caution is warranted regarding the sustainability of the rally.