TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

FOMC MINUTES CAP GAINS ON MARKETS YESTERDAY AS ALL EYES WILL BE ON TODAY’S CPI FIGURES
• The BIST100 closed yesterday 1.51% lower at 3518, and turnover of TRY 62.9bn, ahead of yesterday’s much anticipated release of the Sep. 20-21 FOMC meeting. The Conglomerates weighed down on the benchmark, falling by 2.30%, and the Banks fell by a little over 1%, whereas the Aviation stocks were the best performers, followed by the Energy and Mining stocks. The US stocks also closed negatively due to the slightly higher-than expected PPI figures, as well as the release of the FOMC minutes, hinting continued aggressive rate hikes, and China has seen its Covid cases reach its 3-month peak.
• As such, TAVHL, PGSUS and THYAO were the top 3 advancers among the BIST30 stocks, followed by PETKM, whereas TCELL, KCHOL and EKGYO were the most sold-the Telcos facing profit-takings after the previous day’s gains.
• Today, we expect a sluggish and flattish trading at the BIST ahead of the US CPI figures.
• The TRY continued to trade flat against the greenback at 18.58, and the DXY is flat at 113.27. The rise in the 2yr and 10yr yields continued to rise by a further 18bps and 14bps, respectively.
• On the commodity front, Brent continued to fall further, due to both recession and aggressive CB rate hikes, to below the USD 92 level, also weighed down as OPEC trimmed projections for the amount of crude it will need to pump this quarter, while Russia’s President Vladimir Putin said any energy infrastructure in the world is at risk after the explosions on the Nord Stream pipelines-hinting that Turkey could be the next Russian natural gas export hub to Europe, and both ounce and gram GOLD prices are trading flat at USD 1670 and TRY 998, respectively, falling slightly after the release of the FOMC minutes.
• Minutes of the FOMC’s 3rd consecutive 75bp rate hike show that FED officials are determined to adopt and maintain a restrictive stance as long as necessary to lower down the inflation. They also discussed the dangers of prematurely ending the rate hikes and costs of taking too little action. Some FOMC members stressed the need for the labour market to weaken as a proof that the policies work. As that rhetoric have already been stressed by FOMC members multiple times, the market reaction is muted. All eyes will be on tomorrow’s core CPI print to see if the FED’s policies actually work or not.
• According to media sources, the United States is considering a complete ban on Russian aluminium, in response to Russia’s military escalation in Ukraine-with 3 options on the table: an outright ban, increasing tariffs to levels so punitive they would impose an effective ban, or sanctioning the company that produces the nation’s metal, United Co. Rusal International PJSC, according to sources.
• European Central Bank President Christine Lagarde said the euro-area economy is still growing even as concerns over the outlook continue to mount in the face of surging energy costs. “Europe is not in recession,” Lagarde said Wednesday at an event in Washington, adding that “we never had such a positive employment situation,” whereas the German Economy is forecasted to fall to 0.4% in 2023 compared to the 2.5% growth previously forecast, thanks to an economic war Russia's President Vladimir Putin was waging, per the German economy minister.
• According to media sources, Turkish President, Erdogan is expected to “officially” put forward a peace initiative at a meeting with Putin in Astana, Kazakhstan, today.
NEWS FLOW:
• Turkey August IP figures came in lower than expectations at 2.4% vs 3.0 m/m, and at 1.0% vs the estimate 2.7 y/y.
• DOHOL: Disclosed that it would sell its 69.8% share in CELHA FOR €27mn to Artas Construction (75%) and Betatrans lojistic (%25).
• EKGYO: Disclosed that the revenue at Yeni Levent project has been has been increased to TRY 1.6bn from TRY 1.2bn.
• GESAN: Disclosed that the it has applied for the IPO of its subsidiary Europower.
• USAK: Disclosed that it has decided to close 3 ovens due to modernization, comprising 45% of total capacity.
AGENDA:
• On the local front, the Foreigners’ Weekly Net Stock/Bond Investment changes will be released, whereas on the international front, the US CPI figures will be topping the global headlines, expected to come in at 0.2% and 8.1% m/m and y/y, respectively, as well as the Earnings’ results and Weekly Jobless Claims numbers. Also, the G-20 finance ministers and central banker will be meeting in the US.
Have a great day!

 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.