TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

• The BIST closed yesterday on panic sell-offs, falling by 3.45% to 4507, with a turnover of TRY 111.2bn, due to the limit-down sales in the meme-stocks, SASA, KONTR, HEKTS, and SMRTG. The Banks also fell by over 6%, especially after Fitch’s previous day concerns, whereas the Aviation and Mining stocks diverged positively from the gauge.
• The stocks that managed to survive the bloodbath, and lead the gains at the BIST30 side were KOZAL, THYAO and TOASO, whereas SASA, HEKTS and AKBNK were the most sold.
• Today, we expect the sell-off in the meme-stocks to continue, and thus weigh down on the BIST.
• As of yesterday’s session close of 18:10, the TRY is currently trading flat against the USD at 18.60, and the DXY is also flat at 106.60. The 2yr and 10yr yields fell by 19bps and 5bps to 12.90% and 11.84%, respectively. The 5yr CDS rates rose by 23pts yesterday to 593, thus once again trading dangerously near the 600 ticker.
• On the commodity front, Brent has slid to below the USD 90 level to USD 89.66, due to the Covid surge and consequent closings in China, and both ounce and gram GOLD prices are also lower at USD 1762 and TRY 1054, respectively.
• Federal Reserve Bank of St. Louis President James Bullard urged policymakers to raise interest rates further, saying the level will need to be higher to meet the central bank’s goal to be “sufficiently restrictive” to bring down inflation, adding that the benchmark interest rate would need to be in the 5%-7% range may be needed to bring inflation down-min rates need to get to 5-5.25% level. His Minneapolis counter-part, President Neel Kashkari said that with inflation still high but a lot of monetary policy tightening already in the pipeline, it's unclear how high the US central bank will need to raise its policy rate.'' ''It is the Fed's job to bring inflation down by restraining demand through higher borrowing costs.
• Yesterday, the U.K. Finance Minister Jeremey Hunt announced his latest fiscal statement, which contained £30bn in spending cuts in tax hikes, and the Independent Office for Budget Responsibility estimates that the U.K. economy stated that the U.K economy is in a recession, and that the GDP will contract by 1.4% in 2023.
• Finnish based Energy and Clean Air Research Center-CREA, stated that there was a noticeable increase in natural gas supplies to Turkey from Russia.
• Russia and Ukraine have agreed to renew the grain export deal by another 120 days.
• Amid the rebound in the refining prices, we would be tracking TUPRS shares for potential rebound after its recent underperformance, closing yesterday at TRY 420.
NEWS FLOW:
• Last week, Foreigners BOUGHT net USD 116mn of Turkish EQUITIES but SOLD USD 29mn of Turkish BONDS.
• PGSUS: Disclosed that the parent company Esas Holding, would sell approximately 7mn shares
• HEKTS: Oyak Gıda disclosed that the company has sold 33.17mn HEKTS shares, pulling down its shareholding from 1.39% to 0.08%.
AGENDA:
On the local front, market participants’ survey (expected inflation, GDP g etc) will be released, whereas on the international front, U.S. October Existing Home Sales, as well as ECB President Christine Laggard’s speech are on the agenda. Fitch will also release its Turkey credit rating tonight, which currently stands at “B” with a negative outlook
 

 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.