Urban transformation in the stock market | Economic News

Urban transformation in the stock market |  Economic News

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Money markets reacted differently to the local election results. In Borsa Istanbul, the decline in the indices related to the construction sector, which is particularly hopeful about urban transformation, attracted attention. In Istanbul, one of the cities with high earthquake risk, People’s Alliance Candidate Murat Kurum promised to transform 650 thousand houses and build 100 thousand rentable social houses. His opponent, Ekrem İmamoğlu, performed poorly in this field. The re-election of Ekrem İmamoğlu as the Mayor of Istanbul Metropolitan Municipality, who could only carry out 5 percent of the urban transformation of 100 thousand houses that he promised in the last five years, has further weakened the expectations regarding the safe housing stock.

The re-election of İmamoğlu, who failed in urban transformation and making Istanbul earthquake-proof in every field, caused stock market investors to sell off the shares of companies related to the construction sector. In Borsa Istanbul, the Stone Earth index started the day with a loss of 5.84 percent, the Real Estate index with a loss of 3.84 percent, and the Mining index with a loss of 4.35 percent. Relevant indices reacted negatively to the election of İmamoğlu, who has a weak record in urban housing transformation.

Cement stocks were one of the areas that experienced intense selling pressure on the first trading day after the election. The share values ​​of many cement companies traded on the stock exchange have approached the base transaction value. Real estate investment trust (REIT) shares, which were undecided in terms of direction at the opening, also received their share of the decline. It was noteworthy that the sector that suffered the most depreciation was the Stone Soil Index, where cement companies are listed.

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