TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

• The BIST100 closed Friday on strong gains, closing 2.07% higher at 3627, and turnover of TRY 59.3bn, with the buying appetite accelerating after the removal of the UK Treasury Exchequer. The Banks soared by 3.84%, and the Mining shares by 3.95%.
• KOZAA, YKBNK and PGSUS were Friday’s top buys in the BIST30, whereas TKFEN, SASA and PETKM, were the most sold, for the week. Please recall on Friday, that TKFEN had stated that Turkish companies have problems accessing loans, and sustainable growth and employment not possible without sustainable single-digit inflation.
• For the week, the BIST100 recorded a gain of 1.66%, led by GESAN, PSGYO and KONTR, whereas TKFEN, KORDS and VESTL, were the biggest laggards on a weekly basis. The TRY remained flat against the USD, and the 5yr CDS rates fell to 768 after having started the week at 771. Ounce and GRAM GOLD fell by 3% due to the higher than expected US Inflation rates, with analysts now pricing-in the probability of a 100bps rate hike from the FOMC. Brent also fell by over 7% on a weekly basis to USD 90.73, due to expectations of a global economic slowdown.
• Now, returning to the present from the past, we expect a positive opening at the BIST.
• Currently, the TRY is trading flat against the USD at 18.59, and the DXY has fallen below the 113 level to 112.98, as of print. The 2yr and 10yr TRY bond yields fell by 20bps and 8bps respectively to 16.03% and 13.42%, respectively.
• On the commodity front, Brent is trading slightly higher this morning at USD 9125, after seeing the USD 90 level, and both ounce and gram GOLD prices are trading higher at USD 1652 and TRY 986, respectively.
NEWS FLOW:
• China: Speaking at the opening of the ruling Communist Party's 20th congress, the country's biggest political event, Mr Xi said China reserves right to use force over Taiwan. Beijing official says reunification of China and Taiwan meets the interests of all, including people living on the self-governing island.
• Federal Reserve Bank of St. Louis President James Bullard left open the possibility that the central bank would raise interest rates by 75 basis points at each of its next two meetings in November and December, adding that it was too soon to discuss the policy of shrinking the balance sheet.
• Bank of England Governor Andrew Bailey said he has already spoken to the UK’s new chancellor of the exchequer, Jeremy Hunt, and they agreed on the importance of fiscal sustainability.
• According to 2 members of the Biden Administration, The Federal Reserve’s interest-rate hikes to bring inflation under control are starting to work, while President Joe Biden is doing everything possible to support the US central bank.
• The Year-End Inflation Expectation has risen to 67.78 from 67.73% in September.
• MINING: On Friday, a deadly coal mining explosion left 41 miners dead. Today, we may see this incident create an overhang on listed coal companies, such as CANTE and ODAS.
• AUTOMOTIVE: The head of the Automotive Industry Board, stated that he did not expect a change in the SCT brackets.
• HOUSING: Turkey home sales fell by 22.9% in 113.4k-the largest drop in 1 year.
• FORMT: Disclosed that it has completed the move to the 12k sqm closed- area at its new 200k factory, and have commenced production.
AGENDA:
• On the local front, the MPC One-Week Repo Rate, with analysts expecting a 100bps rate cut, will be the focal macro release on Thursday, with the Gov’t Budget Balance, House Price Index, Weekly Foreigners’ STOCK and BOND Investments, and the Consumer Confidence Data, also to be released. ASELS will also kick-off the 3q22 financials this week.
• On the international side, the US Empire Manufacturing, Industrial Production, Capacity Utilization Rate, Building Permits, Housing Starts, the Beige Book, Jobless Claims, and Existing Home Sales will be released. The Eurozone will be focusing on the CPI figures, Japan on IP, and CPI, whereas China’s Industrial Production, GDP growth and Retail Sales will be closely watched this week.
 
 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.