In the first quarter of 2026, the Turkish stock market saw a strong rally, reflecting an improved perception of Turkish assets among international and local investors. Borsa Istanbul’s key index, the BIST 100, delivered strong gains: It starting the year at 11,296 points and climbed to record highs throughout the quarter, peaking above 13,800 points. The BIST 100 rose 13.6% for the quarter. By comparison, the MSCI Emerging Markets aggregate stock index declined by 0.2% in dollar terms during the same period.
The market received additional support from Fitch’s decision to upgrade the outlook on Turkey’s sovereign credit rating from «Stable» to «Positive» while maintaining the rating at BB-, as well as from a steady decline in the cost of sovereign risk insurance (Credit Default Swaps, or CDSs). Against this backdrop, net capital inflows from foreign institutional funds resumed, driven by perceptions that Turkish issuers were fundamental undervalued.
A significant event for the Turkish stock market this summer was the entry of a foreign player into the country. In mid-August, Freedom Yatırım, a subsidiary of Freedom Holding Corp. (FRHC), received a brokerage license from the Capital Markets Board of Turkey (CMB). This marked the first time in 34 years that a foreign player had been granted a brokerage license with broad powers. For FRHC, obtaining a Turkish license marked a significant milestone in its international expansion.
Through the TraderNet trading platform, the company will connect the Turkish financial market with international markets. Freedom Yatırım has already integrated its systems with Borsa Istanbul, enabling FRHC clients worldwide to access investment opportunities in the Turkish market. For investors in Turkey, this means gradually expanding access to international markets through FRHC’s global brokerage capabilities.
Almost simultaneously with receiving its brokerage license, FRHC acquired its own bank in Turkey. The $33.4 million acquisition of a 99.3% stake in Turkish Bank closed on July 31. The bank was then renamed Freedom Bank. It will operate and develop in close cooperation with the Freedom Yatırım brokerage and other group services.
«Our ambitions in Turkey extend beyond brokerage services,» said FRHC CEO Timur Turlov. «We plan to build an integrated digital financial ecosystem around Freedom Bank and Freedom Yatırım, eventually bringing together banking, investment and other digital services. We will draw on our experience in Kazakhstan, where the Freedom SuperApp already combines financial services and everyday digital services on a single platform. In Turkey, we plan to adapt this model to the needs of the local market.»
Another financial giant from Kazakhstan, Kaspi.kz, also intends to replicate it’s Kazakhstan model in Turkey. In July, the holding company completed the acquisition of the Turkish bank Rabobank. It has a full banking license but has no borrowers, depositors or branch network. Apparently, the license was precisely what Kaspi.kz needed.
Furthermore, in January 2025, Kaspi.kz acquired a controlling stake (85.7%) in the Turkish marketplace Hepsiburada. Now, with a banking license, Kaspi.kz will attempt to replicate its success in Kazakhstan in Turkey, competing not only with local banking and fintech players but also with the Freedom ecosystem.
