Global Index eliminates the stocks of 4 Turkish companies

Global Index eliminates the stocks of 4 Turkish companies

MSCI, a leading global provider of stock market indices, plays a significant role in the world of finance, including in emerging markets like Türkiye. As an independently traded company, MSCI designs and maintains indices that are used by asset managers, pension funds, and other institutional investors to benchmark and track equity markets [1][2][5].

Being included in an MSCI index is beneficial for Turkish companies as it increases their visibility and credibility among global investors. Many investment funds and pension funds are designed to track these indices, leading to increased demand for the company’s shares, potentially raising share prices and trading volumes [2]. Conversely, removal from an MSCI index can lead to institutional investors reducing or liquidating their holdings, which may negatively impact the stock’s liquidity and price [2].

The MSCI Turkey Index, in particular, measures large- and mid-cap Turkish companies to reflect their performance for global investors focusing on Turkey's market [4]. Recent changes in MSCI index membership have had an impact on the flow of foreign capital into Turkish firms and influenced market dynamics. For instance, four Turkish companies were recently removed from the MSCI Global Standard Index, affecting their exposure to global funds, while others were added to the MSCI Global Small Cap Index [2].

Among the companies being removed from the MSCI Global Small Cap Index are Politeknik, Kontrolmatik, Yeo Technology, Zorlu Energy, Smart Solar Energy, Eczacibasi Pharmaceutical, and Akfen Renewable Energy [3]. On the other hand, six companies will be added to the MSCI Global Small Cap Index from Türkiye, including Efor Cay Sanayi, Margun Enerji Uretim, Pegasus Airlines, Tera Yatirim Menkul, Sisecam, and Visne Madencilik [6].

The removal from an MSCI index can have substantial consequences for a company's trading volumes and share prices. For instance, the removal of Tureks Tourism, Konya Cement, and Mia Technology from the MSCI Global Small Cap Index may impact their trading activities [3]. Similarly, the addition of Pegasus Airlines to the MSCI Global Small Cap Index could potentially increase demand for the company’s shares and boost its trading volumes.

In addition to the changes in the MSCI Global Small Cap Index, the MSCI Turkey Index has also seen changes. The first half of 2025 has been disappointing for the Istanbul exchange, but there are signs of a push to reverse this trend [7].

Outside of the financial sphere, Türkiye has been experiencing other significant events. For example, Pope Francis' visit to Iznik has triggered a media frenzy, and water shortages in Izmir, Cesme, and Foca have disrupted daily life [8].

Meanwhile, on the sports front, Besiktas has made headlines with their UEFA Conference League qualifier victory over St. Patrick's, and Wilfred Ndidi's transfer from Leicester City to Besiktas has added to the excitement [9].

In the midst of these changes, the importance of MSCI index membership for Turkish companies remains evident, as it acts as a gateway for international investment and exposure, impacting their market valuation and access to liquidity.

[1] MSCI (Morgan Stanley Capital International) [2] Impact of MSCI Index Membership on Turkish Companies [3] Companies Removed from MSCI Global Small Cap Index [4] MSCI Turkey Index Overview [5] MSCI in Emerging Markets: Türkiye [6] Companies Added to MSCI Global Small Cap Index from Türkiye [7] Istanbul Exchange Signals Push to Reverse Disappointing Scene in 2025's First Half [8] Pope's Visit to Iznik Triggers Media Frenzy in Türkiye [9] Besiktas Thrashes St. Patrick's 4-1 Away in UEFA Conference League Qualifier [10] Wilfred Ndidi Transferred from Leicester City to Besiktas [11] Water Shortages Disrupt Daily Life in Türkiye

1. The MSCI Turkey Index, which measures large- and mid-cap Turkish companies, serves as a significant gateway for these companies to gain international investment and exposure, impacting their market valuation and access to liquidity.
2. For some Turkish companies, such as Politeknik, Kontrolmatik, Yeo Technology, Zorlu Energy, Smart Solar Energy, Eczacibasi Pharmaceutical, and Akfen Renewable Energy, removal from the MSCI Global Small Cap Index may impact their trading activities.
3. On the contrary, inclusion in the MSCI Global Small Cap Index, like Pegasus Airlines, could potentially increase demand for the company’s shares and boost its trading volumes.
4. Besides the financial implications, Türkiye is experiencing other significant events, such as Pope Francis' visit to Iznik, water shortages in Izmir, Cesme, and Foca, and sports events like Besiktas' UEFA Conference League qualifier victory and Wilfred Ndidi's transfer to the same team.

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