Turkey's stock exchange is set to resume trading on Wednesday after suspending activities since Feb. 8 following two deadly earthquakes struck its southern region and erased ~$35B from equities.
Looking to support equity markets, the government is planning a series of actions to reverse a selloff that sent Turkey's main index into a technical bear market.
Private pension funds that receive a government match of up to 30% of individual contributions will be ordered to use the government portion for stock purchases.
Meanwhile, the Turkey Wealth Fund (or TVF), the nation's $33B sovereign wealth fund, will set up a mechanism to support stocks during times of volatility. TVF will get most of its capital from state lenders, according to Bloomberg, and repurchase equities on the open market. Turkey will also temporarily revoke the withholding tax, currently 15%, that listed companies need to pay when they buy back their stock - potentially boosting shares and aiding the rout.
Related tickers: ( NASDAQ: TUR ) ( TUSC ) ( NQTR )
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Plunge protection team? Turkey to support stocks after market tremors