TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

BIST SOARS HIGHER AS RETURN TO ORTHODOX POLICIES BEGIN TO BEAR FRUIT
• The BIST kicked-off the new week, soaring by 1.82% to 8487, thus managing to finally hurdle over the tough 8400 resistance level, on a turnover of TRY 152.9bn, after seeing its intra-day peak at 8512. The buying appetite can be attributed to both encouraging statements from the S&P EMEA Sovereign Specialist, Frank Gill, coupled with the expectations of a swap agreement with the UK during the Treasury and Finance Minister, Mehmet Simsek's meeting with investors starting on October 4th.
• As such, the Banks rallied by 2.20%, while the Transportation stocks rose by nearly 4%, as the Health Minister assured the public that there would be no closures or mass vaccinations due to the Eris Covid strain.
• Now, turning our attention to the BIST30 list, ARCLK shares once again topped the list, closing 7.12% higher on speculations that it will disclose a new share buyback program, and followed by BIMAS and PETKM (announcing a new refinery purchase), while HEKTS faced profit-takings and found itself at the bottom of the blue-chips, and joined by TOASO and GUBRF.
• Today, we expect a slightly positive opening at the BIST100.
• As of yesterday's closing prices, the TRY is trading weaker against the greenback at 27.50, but stronger against the Euro at 28.78, while DXY has strengthened to over the 107 level after yesterday's hawkish Fed talk. The 2yr rates rose modestly by 3bps to 29.77%, while the 10yr rates were unchanged at 27.15%.
• On the Commodity front, Brent has fallen to $89.42, and ounce and gram GOLD prices are lower at $1819 and TRY 1609, on the back of the prolonged high-interest rate environment.
• At yesterday's meeting with community and business leaders in Pennsylvania, Fed chair Jerome Powerll stated that the US economy is still dealing with the aftermath of the Covid-19 pandemic, and not commenting specifically on the current monetary policy or the economic outlook.
• Yesterday, the Turkish PMI figures rose to 49.60 in September vs the previous month's reading of 49, while the US PMI figures also rose to 49 from its previous reading of 47.6 in August.
• Fed Presidents were on a hawkish mood yesterday perhaps due to the Monday blues, with the Fed Governor Michelle Bowman, stating that she will continue to support raising the federal funds rate at a future meeting if the incoming data indicated that progress on inflation has stalled or is too slow to bring inflation to 2%.
AGENDA
• On the local front today, Sep CPI figures will be released (BBGe: 4.78% m/m & 61.60% y/y: Core 67.20%), and CBRT Governor Hafize Gaye Erkan is also expected to speak today at the Planning and Budget Committee, while the JOLTS figures will be released from the US side.
CORPORATE
• ASTOR: Disclosed that it has signed 2 independent contracts with Fortis Enerji, totaling nearly $5.5mn, representing 2.03% of its revenues realized in 2022.
• CEOEM: The Board decided to sell all shares (19% stake) in CORE MEDYA TANITIM VE İLETİŞİM A.Ş. for TRY 13,338,000 based on an independent valuation.
• CEMTS: Disclosed that it will invest around $3.1mn to establish 2 solar power plants with a combined capacity of 32MW.
• CWENE: The company and Çemtaş Çelik Makina Sanayi ve Ticaret A.Ş. have agreed on the installation of a solar power plant in Kars with a capacity of 32,000 kWe for $30,939,077.75 (or 833,189,363.80 TL). The project is expected to be completed in the last quarter of 2024.
• ISSEN: In alignment with a regulatory directive, the company has signed an EPC contract for the installation of a solar power plant of 9,157.50 kWp / 6,300 kWe capacity, costing $2,960,000 + VAT.
• NUGYO: According to the BloombergHT website, the company has asked for an extension on its bond payment.
• PETKM: Disclosed that USD 240 million was paid on the signing of share purchase agreement and USD 240 million was paid on the date on which testing at the STAR Refinery commenced for the purchase of Rafineri Holding A.Ş. that represents 20% of its capital with a purchase price of total USD 480 millions. Rafineri Holding A.Ş. holds 59,99% shares of SOCAR Turkey Yatırım A.Ş. which holds 99,99% shares of STAR Rafineri A.Ş (STAR) that operates a refiner in Turkey. With this agreement, it was announced on 10.04.2023 that PETKM was to acquire 12% indirect share of STAR.
• USAK: Disclosed that due to rising interest rat, both on the global and the local front, the ceramics producer will undergo a contraction, resulting in worker-layoffs.

 TFG Istanbul Menkul Değerler A.Ş.
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