Smaller Turkish stocks, battered by liquidity crunch, struggle to recover

Hedef Holding

05/10/2026 12:55

By Canan Sevgili and Mirac Dereli
Oct 5 (Reuters) - Dozens of smaller Turkish stocks have been pinned at their daily loss limits for weeks, with some losing more than 90% of their value and trading in extremely thin volumes, after new regulations for investment funds triggered a liquidity crunch.
A selloff spread across Turkey's equity market in September as liquidity problems in investment funds deepened. The Capital Markets Board (SPK) on September 17 ordered the liquidation of 131 funds managing more than $20 billion and serving 455,758 retail investors.
LSEG data showed IT company Odine Solutions Teknoloji's ODINE.IS shares have fallen more than 92% since August 31, hitting its daily loss limit for 25 consecutive trading days.
Another 12 stocks, namely Gundogdu Gida GUNDG.IS, Hedef Holding HEDEF.IS, Katilimevim KTLEV.IS, Pasifik Eurasia PASEU.IS, Peker REIT PEKGY.IS, Anel Elektrik ANELE.IS, Prizma Press PRZMA.IS, Dunya Holding DUNYH.IS, Temapol Polimer TMPOL.IS, Birlesim Grup BIGEN.IS, Ufuk Yatirim UFUK.IS and Savur REIT SVGYO have lost between 80% and 90% during the same period.
The broad BIST 100 index .XU100 fell nearly 17% in September, its worst monthly performance since the 2008 global financial crisis, and entered a bear market as the selloff spread.
The fall was steeper, however, for small company shares which had been popular and trading at inflated multiples before the fund crisis. Istanbul's index of companies outside the top 100 .XTUMY has fallen around 34% since the end of August.
Smaller stocks have borne the brunt of the selloff because their relatively thin liquidity has left the market struggling to absorb selling pressure as funds faced redemptions and liquidations.
With few buyers willing to step in, sell orders have piled up at daily loss limits, trapping some stocks there for weeks and causing trading volumes to collapse.
 
     
Hedef Holding HEDEF.IS, a Turkish conglomerate engaged in investment activities and one of the hardest-hit stocks, closed at its daily loss limit for 23 consecutive sessions from August 31 through September 29. It broke that streak last week and is now set to close its second consecutive session at the daily gains limit of 10%.
Despite gains on Friday and Monday, the stock remained almost 90% below its level at the end of August.
Lidya Yesil Enerji LYDYE.IS and Lidya Holding LYDHO.IS also hit their daily upper limits for a second straight session on Monday, joined by Temapol TMPOL.IS. Despite the gains, the stocks remain down about 60%, 71% and 81%, respectively, since the end of August.
Trading volume was still extremely thin in some stocks that remained under heavy selling pressure.
Odine Teknoloji's daily trading volume dropped 99% from its pre-September level to around 5,300 shares last week.

(Reporting by Canan Sevgili and Miraç Eren Dereli; Editing by Daren Butler)
((canan.sevgili@thomsonreuters.com;))