SPK lifts cap, buybacks near 2 billion lira

The Capital Markets Board removed its buyback cap, prompting a rush into company repurchases that officials said totaled almost 2 billion lira in a week.

Market reaction to the surge is pending.

Nearly 2bn lira buybacks

Officials said the regulator's decision this week eliminated the previous ceiling on how much listed firms could repurchase, and companies moved quickly to use the leeway. Data showed the volume of announced and executed buybacks approached 2 billion lira in the seven days to Sept. 29, officials said.

Market participants said the change has two immediate effects: it increases corporate demand for listed shares and reduces the free float available to investors. Brokers and treasury desks told reporters that buyback orders were concentrated in firms that had idle cash and low trading turnover, though officials declined to name companies.

If the current weekly pace holds through Oct. 6, then cumulative buybacks would exceed roughly 8 billion lira in a month, a level that would materially tighten available float and could support near-term prices, market participants said. Watch for company material-event disclosures over the coming week for detailed volumes and issuer-level breakdowns.