TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

EUROZONE GROWTH FIGURES TO TOP TODAY’s AGENDA
• The BIST closed yesterday’s yo-yo trading session in the green, thanks to the inflows in the afternoon, led by the blue-chips, closing 0.85% higher at the 5000 level to the dot, and turnover of TRY 113.5bn, whereas the US markets were suppressed by comments from CEOs warning of a possible recession in 2023, coupled with Goldman’s warning of job cuts, and BofA’s slowdown in hiring due to potential recession risks.
• The Banks underperformed the benchmark, rising by just 0.41%, compared to the near 1% gains in the Conglomerates and 0.85% gains in the Industrials, whereas the Aviation stocks faced profit-taking.
• KRDMD topped the gains at the BIST30, after the Turkey sovereign wealth fund said that it would buy a minority stake in the steelmaker, more details can be found below, and was followed by reactionary buybacks at BIMAS, and the overhang was lifted at SASA after it announced raising its capital ceiling to TRY 15bn from the current TRY 3bn level. At the bottom of the Index, we observed GUBRF, TKFEN and KOZAA.
• Today, we expect the upward momentum to continue.
• As of yesterday’s close, the TRY is trading flat against the USD at 18.63, but slightly stronger against the Euro at 19.50. The 2yr bond yields fell slightly by 2bps to 10.83%, whereas the 10yr yields went the opposite direction by 14bps to 10.81%. The 5yr CDS rates will start the new day from the 532 level, after rising by nearly 13pts yesterday.
• On the commodity front, Brent has fallen below the USD 80 level to USD 79.38 corresponding to a 9% slide from Monday’s peak, and both ounce and gram GOLD prices are trading flat at USD 1773 and TRY 1062, respectively.
NEWS FLOW:
• Speaking to the local media, CBRT Governor stated that the fall in inflation was not attributable solely on the base-effect, but also due to the measures taken by the bank, the bank has no FX target level, that Turkey loans were geared towards import substitution, and that the Turkish central bank was the only bank to boost reserves this year.
• Fitch Disclosed yesterday that it expects the Turkish economy to grow by 2.9% in 2023.
• RETAIL: According to the Official Gazette, retail companies with greater than 200 stores will have to disclose their product list and prices to the Ministry of Trade. We deem the news neutral.
• Head of the Turkish Exporters Assemble warned that a significant hike in the planned minimum wage could hurt the exporters’ competitive advantage, and want a competitive rate hike, while complaining that the parity was hurting exporters.
• FRIGO: Disclosed that it has received a €2.6mn order to be completed in 2023.
• KRDMD: The sovereign wealth fund disclosed yesterday that it will gain rights to appoint four members to the board of directors after it buys a 21% holding for almost 656.4 million liras ($35.2 million).
• TURSG: Disclosed that it has sold its 1.43% stake in Taksim Hotel to VAKBN.
AGENDA:
• On the local front, the Cash Budget Balance will be released, whereas on the international front, German IP figures, and the Eurozone 3q22 GDP figures will be disclosed, and the US MBA Mortgage Applications.

 
 TFG Istanbul Menkul Değerler A.Ş.
  www.tfgistanbul.com/arastirma-raporlar
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 Burada yer alan yatırım bilgi, yorum ve tavsiyeler yatırım danışmanlığı kapsamında değildir.Yatırım danışmanlığı hizmeti ; aracı kurumlar, portföy yönetim şirketleri, mevduat kabul etmeyen bankalar ile müşteri arasında imzalanacak yatırım danışmanlığı sözleşmesi çerçevesinde sunulmaktadır.Burada yer alan yorum ve tavsiyeler, yorum ve tavsiyede bulunanların kişisel görüşlerine dayanmaktadır.Bu görüşler mali durumunuz ile risk ve getiri tercihlerinize uygun olmayabılır.Bu nedenle, sadece burada yer alan bilgilere dayanılarak yatırım kararı verilmesi beklentilerinize uygun sonuçlar doğurmayabilir.