TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

• The BIST appears to have ended its long-running nightmare yesterday, closing 5.11% higher, thus paring yesterday’s losses, and closing at 4971, with a turnover of TRY 118bn, with the buying appetite accelerating after closing of the margin calls at 3pm, local time.
• The Transportation and Industrials led the gains, whereas the Banks closed a modest 3.87%, thus below the benchmark.
• KRDMD and SASA shares closed limit-up at the BIST30, followed by the 8.69% rise in TUPRS, thanks to BOFA’s “Buy” recommendation on the name. Though there were no stocks in the red at the BIST30, BIMAS, GARAN and TCELL recorded the least gains compared to their peers.
• We are seeing the re-opening of China’s economy boosting iron-ore prices, thus the main contributor to the rise in KRDMD shares.
• Today, we expect the positive headwind from yesterday to continue.
• As of yesterday’s close, the TRY is trading flat at 18.78 against the USD, but slightly stronger against the Euro at 20.35, whereas the DXY is trading flat at 102.40, thanks to the switch to dovish rhetoric from the Fed presidents after the decline in the CPI figures. Whereas the 2yr bond rates closed flat at 9.87%, the 10yr yields rose by 32bps to 9.83%. The 5yr CDS rates rose by 4pts yesterday to 545.
• On the commodity front, Brent is trading slightly lower, below the USD 84 ticker at USD 83.88, and ounce and gram GOLD are trading flat after yesterday’s surge at USD 1894 and TRY 1144, respectively.
• The US CPI fell by 0.1% m/m, thus in-line with the market expectations, and receding to 6.5% y/y, whereas excluding the food and energy, the CPI rose by 0.3% m/m and 5.7% y/y, thus adding to evidence that some price pressures are easing and offering the Federal Reserve room to slow the pace of interest-rate hikes next month.
• Meanwhile, Federal Reserve Bank of Philadelphia President Patrick Harker said the central bank should lift interest rates in quarter-point increments “going forward” as it approaches the end point in its most aggressive tightening campaign in decades. “I expect that we will raise rates a few more times this year, though, to my mind, the days of us raising them 75 basis points at a time have surely passed.”
• Federal Reserve Bank of St. Louis President James Bullard, who is not a voting member of the FOMC, said the US central bank should raise interest rates above 5% expeditiously to ensure price pressures are subdued, stating ““The Fed is going to have to maintain rates at high enough levels” to bring inflation down and keep it down.”
NEWS FLOW:
• PGSUS: Disclosed that its December passenger numbers rose by 31% y/y, reaching 26.94mn passengers
• SAHOL: Disclosed that it bought back 620k shares at TRY 38.70
• EKGYO: Disclosed that it sold 12mn shares within its share buyback program at TRY 8.04, with 126.8mn shares remaining.
Equity and Bond Transactions by Non-Residents
• Foreigners started the new year with sell off. Non-residents have divested a total of US$407mn of portfolio investments. This included a net outflow of US$352mn from equity portfolios and $55 million from bond portfolios. Over the course of 2022, foreign investors have sold a total of US$4.4bn of equities and $2.2 billion of fixed income investments. Currently, their respective shares in bonds and equities are 0.7% and 29.4%. At the end of 2019, foreigners used to own 61% of the BIST’s free float, while their average ownership over the past 2 years is 34%.
AGENDA:
• On the local front, the Expected 12mth Inflation Survey will be released, whereas on the international side, the US will be releasing the University of Michigan consumer sentiment, and Citigroup, JPMorgan and Well Fargo will kick-off the financial season, and China will disclose its trade figures.

 TFG Istanbul Menkul Değerler A.Ş.
  www.tfgistanbul.com/arastirma-raporlar
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                  Yasal Uyarı
 
 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.