TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

BIST LIKELY TO OPEN FLAT AS DIPLOMACY TRAFFIC IN THE MIDDLE EAST THICKENS
• The BIST100 fell a further 0.94% yesterday to close at 7769, and again on a low turnover, due to the escalation of violence, and Israel's call for the 24 hospitals to evacuate Gaza. The Mining and Industrials were the most sold, while the Banks closed just 0.11% lower, and the REITs somewhat managed to diverge positively from their peers. The European markets also closed lower yesterday as investors assessed the impact of the crises in the Middle East, coupled with earnings and economic data.
• Today, we expect the BIST to diverge positively from its international peers, despite the negative trading in the global markets on the back of Fed Chair Powell's hawkish speech yesterday, due to Israel allowing humanitarian aid to arrive via the Egyptian border at the Rafah crossing, as well as delaying, perhaps even cancelling its gorund attack in Gaza, thus giving hope that at least a ceasefire can be brokered between the warring factors.
• On the BIST30 front, there ASELS was the most bought, due to the escalation of violence, and followed by FROTO and ENKAI shares, while GUBRF, TUPRS and ODAS were the most sold.
• As of yesterday's BIST closing, the TRY is trading weaker against the USD, despite trading below the 28 level, currently at 28.03, and also weaker against the Euro at 29.65, while the DXY is calm at 106.27. The 2yr and 10yr rates closed 53bps and 7bps higher to 29.64% and 28.13%, respectively.
• On the commodity side, Brent is trading flat at $92.09, and whereas ounce is trading flat at $1978, gram GOLD is higher at TRY 1783.
• Speaking at the Economic Club of New York, Fed Chair Jerome Powell acknowledged recent signs of cooling in inflation, but said that the Bank would be "resolte" in its committment to its 2% mandate. He also added that the resillience of the economy is a story of stronger demand, adding that inflation is still too high and lower economic growth is likely needed to bring it down-thus hinting towards higher interest rates, saying that he does not think rates are too high now.
• Yesterday, Israel withdrew its diplomats, from Turkey, as well as Jordan, Morocco and Bahrain, for safety concerns rather than political. The ambassador to Turkey, had already left Turkey, per the media sources.
• Last week, Foreign investors were net SELLERS of $13mn EQUITIES and net SELLERS of $1mn BONDS, and the net TRY reserves to TRY 22.1bn from TRY 20.7bn.

AGENDA
• The October 2023 CBRT Expectations Survey will be released on the local front, while Germany will release its September CPI figures. Please note that ARCLK will kick-off the 3Q23 financial season on the local front.
CORPORATE
• CWENE: Disclosed that it will establish a subsidiary in the US.
• HATSN: Disclosed that the company signed a contract with a foreign firm for the supply of various materials worth $6.3mn.
• HDFGS: Disclosed that an investment of €500k was made in WePlay.
• INDES: Disclosed that the company decided to conduct research in renewable energy products, and the company's 100% subsidiary, Teklos Technology, decided to invest in land and establish a logistics center.
• LOGO: Disclosed that Logimat Software was purchased in its entirety for TRY 2.5mn.
• MPARK: Disclosed that Manager Liability Insurance up to $10mn has been renewed.
• TKFEN: Disclosed that the Board has decided to transfer several of its properties in Ulus, Beşiktaş, Istanbul to a new 100% owned subsidiary. The process will use a simplified method per Turkish regulations. Relevant documentation is in preparation, and necessary applications will be made with pertinent public and private institutions.
• TURSG: Disclosed that the premium production increased by 140% to 38.7 billion TL in the January-September period.
• ZEDUR: Diyar Battery Systems was granted a Preliminary License to establish a Storage GES with an installed power of 22MWm / 15MWe and a storage capacity of 15 MWh in Konya Yunak.

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