After a poll was released stating that Erdogan may not win Turkey’s next elections, the Turkish currency and stock market suffered greatly.

The Turkish Lira fell by over 5% against the US Dollar. Meanwhile, Turkey’s main stock market index, the BIS 100 initially plunged 8 percent, and made a slight correction. The BIS 100 is still 7 percent lower than yesterday.

Inan Demir, a chief economist at Finansbank (in Istanbul), said he was not surprised. “As expected, the markets’ initial reaction to a hung parliament is a selloff,” said Demir. “If a coalition is to be formed, we expect markets to recover somewhat once the contours of the next government are more visible. But even in this scenario, we would not expect all the losses to be recouped as uncertainties associated with a coalition government forces TRY denominated assets to settle eventually at a plateau notably weaker than pre-election levels.”

Kerem Baykal, a representative from Ak Portfoy in Istanbul, said traders should stay tuned to how elections unfold.

“There’s far too much uncertainty at the moment,” said Baykal. “We don’t even know which party or parties will be in the coalition, and on the very pessimistic side, if any party will join a coalition at all. That could even mean early elections. I don’t think there will be a recovery until we get clarity on this.”