Turkey Stock Index Drops Over 3% After MSCI Freezes Changes; Regulator Ordered 131 Fund Liquidations

3-line summary

• Turkey's benchmark BIST 100 (XU100) index fell more than 3% intraday Friday after MSCI froze certain index changes and warned of a possible downgrade to frontier-market status if insufficient reform progress is shown by mid-2027; Turkey's emerging-market status remains intact for now, but a downgrade could trigger selling by funds tracking MSCI emerging-market indexes.
• Beyond the MSCI news already reported, the article added that Turkish regulators ordered the liquidation of 131 funds last month — funds that reportedly had grown to over $20 billion in assets within three years. The crisis has pushed the stock market into a bear market, with September posting the index's worst monthly performance since 2008.
• Scrutiny continues over free-float calculation methods and suspected collusive trading in some stocks.

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