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Turkey’s stock exchange on Wednesday suspended trading of equities for the first time in 24 years, following a deep sell-off triggered by two massive earthquakes.
The benchmark Borsa Istanbul 100 Index is headed for its worst weekly performance since the 2008 global financial crisis.
The index entered bear-market territory on Tuesday as losses mounted in the aftermath of the twin quakes that struck Turkey’s southeastern region.
"Our stock exchange has decided to halt trading in equities, futures and options markets," Borsa Istanbul said in a statement at 11:01 a.m. local time, following two automatic market-wide circuit breakers. It didn’t say when trading would resume.
"At times of catastrophes like this, suspending trading in the stock market is a better decision in order to protect investors," Marmara Capital’s Haydar Acun said.
Memories of 1999, when tremors hit Turkey’s industrial hub near Istanbul, may also be fueling panic among retail traders. Trading in Turkish stocks was suspended for a week at the time.
