BIST 100 (TURKEY) and INDUSTRIAL SECTOR

Industrial sector outperformance is usually negative for Turkey’s BIST 100 index. Last  time I updated this chart was in January 2014. Since the last update It’s been more than a year and BIST 100 index trended higher from 60,000 levels to 91,000 levels. Strong upward trend might be reversing once again towards a corrective period in Turkish equities.

BIST 100 INDEX

XUINDXU100

Industrial Sector continues to outperform the BIST 100 index. 

Relative performance ratio between Industrial sector and BIST 100 index is breaking out of a long-term consolidation. Historically industrial sector’s outperformance didn’t bode well for the BIST 100 performance. Strong uptrends were usually led by financial sector outperformance.

Latest change can have significant medium/long-term implications. We can expect further correction/sideways trading in equities and continuation of industrial sector outperformance in the coming months.