Turkey’s stock exchange introduced an uptick rule on the short selling of some stocks in an effort to curb a slide in prices.
The Borsa Istanbul introduced the measure for one day on shares of the BIST 50 index of Turkey’s largest companies, it said in a statement on Monday.
Turkey’s main BIST 100 index hit a record high of 2,406.87 points on Friday before slumping, twice triggering a so-called circuit breaker that halted trading. It ended the day down 8.5 percent. The index was trading up 0.4 percent at 2,093.68 points mid-morning on Monday.
Shares dived on Friday after the lira extended a record low against the dollar. Many had jumped over the past month as local investors sought to protect their savings against the lira’s losses.
An uptick rule requires short sales to be conducted at a higher price than the previous trade. Investors engage in short selling when they expect the price of a stock to fall.
The lira hit a fresh record low of 17.54 per dollar on Monday. It was trading down 6.4 percent at 17.42 per dollar as of 10:59 a.m. in Istanbul.