What is BIST 30?
BIST 30 is an index consisting of stocks of the 30 largest companies traded on Borsa Istanbul. The BIST 30 index represents approximately 80% of the BIST 100 index and is one of Turkey's most important economic indicators. BIST 30 index covers companies with high market capitalization and transaction volume. These companies include banks, industries, energy companies, telecommunications companies and retail companies.
The purpose of the BIST 30 index is to measure the performance of Turkey's leading companies and to provide investors with a reference point. The BIST 30 index is also the underlying asset of the contracts traded on the futures and options market (VIOP). Information about the BIST 30 index is published on the official website of Borsa Istanbul and on various financial platforms.
When calculating the BIST 30 index, the market values and capital increase rates of the companies are taken into account. The index value is updated every day at the end of the session. Companies included in the index are re-determined in January and July each year. The criteria for entering or exiting the index include market cap rank, trading volume rank, free float ratio, and listing period.
There are advantages and disadvantages to investing in the BIST 30 index. Among its advantages are:
- The BIST 30 index reflects the general situation of the Turkish economy and is sensitive to macroeconomic developments.
- The BIST 30 index is a liquid index and can be easily traded.
- The BIST 30 index provides diversification opportunities and reduces the risks associated with a single company.
- With the contracts traded in BIST 30 index, VIOP, both buy and sell positions can be taken and leverage effect can be used.
Among the disadvantages are:
- The BIST 30 index is subject to market fluctuations and short-term price movements may affect investors.
- BIST 30 index invests heavily in some sectors and is open to sectoral risks. For example, the banking sector has a large share in the index.
- BIST 30 index may change depending on the interest of foreign investors and carries exchange rate risk. The depreciation of the Turkish Lira may adversely affect the index value.
Those who want to invest in the BIST 30 index can buy and sell stocks directly, as well as prefer contracts traded in VIOP or exchange traded funds (ETFs).