TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

The BIST closed the day 0.82% lower at 7720, and turnover of TRY 119.7bn, despite a strong opening, in anticipation of the FOMC meeting. The Banks are continuing to pare last week's losses, while the Transportation stocks were yesterday's best performing stocks, due to both falling Brent prices, and the Health Minister's reassurance that the Eris variant was mild, and that there was no need for panic.
• Thus, among the blue-chip stocks, TAVHL, AKSEN (on the back of yesterday's analyst meeting) and GARAN were the most bought, while ODAS, ASELS, and TOASO were the most sold.
• Today, we expect a negative opening at the BIST, parallel to the global markets, after yesterday's hawkish press conference by Fed President Powell, as the Fed's latest decision to hold rates steady was expected, but the central bank said it still expects one more hike before the end of the year and fewer rate cuts than previously expected for 2024.
• As of yesterday's close, the TRY is trading stronger against the USD, just below the 27 level, but considerably stronger against the Euro at 28.70, while the DXY has risen considerably to 105.56. The 2r rates fell by 456bps to 24.09%, however, the 10yr yields sky rocked by 242 bps to 26.14%.
• On the commodity front, Brent has fallen to USD 91.84, and both ounce and gram GOLD are also considerably lower, falling with ounce GOLD falling around USD 10 since yesterday's session closing to USD 1928, and gram GOLD is lower at TRY 1673.
• As widely expected, the FOMC left the interest rates unchanged, but points to rates staying higher for longer, while still leaving the door open for one more rate hike before the end of the year, and fewer cuts than previously indicated for 2024. Projections showed that the Fed expects to hike rates to 5.6% by the end of 2023, and around the 5.25-5.50 level for 2024. Growth rate for 2023 was increased to 2.1%, and 1.5% vs the previous forecast of 1.1% for 2024. The expected inflation rate also moved lower to 3.7%, down 0.2 percentage point from June, as did the outlook for unemployment, now projected at 3.8%, compared with 4.1% previously.
 
AGENDA:
• The MPC will take center stage today, and the census is for the policy rate to be increased by 500bps to 30%, but a rate hike of up to 1000bpis not out of the question. Consumer Confidence and Foreigners' Net Weekly STOCK/BOND holding as well as weekly banking balance sheet details will also be announced today. We may see a higher-than expected rate hike spur sell-offs on local favorite stocks. A switch in preference from local favorites to those foreign institutionals are likely, such as Banks, Conglomerates and BIMAS.
• On the global front, the BOE will also be disclosing its policy rate today, and on the back of yesterday's lower-than expected inflation rates, it may also opt to keep the rates unchanged, while the US will be releasing its Weekly Jobless Claims, Existing Home Sales, and Europe will disclose its Consumer Confidence Level.
 
CORPORATE:
TATEN - Amendment to Loan Agreement with Turkey Foundations Bank Inc. TATEN has revised its existing loan agreement in partnership with Turkey Foundations Bank Inc. This decision comes in light of the capacity enhancements intended for Tatlıpınar Energy Production Inc.'s WPP project. The modification entails an allocation of a non-cash limit of 20,842,825 Euros, secured from Bayerische Landesbank's ECA loan, specifically directed for the WPP capacity boost of 33.6 MW.
TATEN - Revised Contract for Hybrid HPP Investment Progressing further with its capacity expansion strategy, TATEN has made amendments to its Turnkey Engineering, Supply, and Construction Contract. This contract, originally inked on 23.03.2023 with Elin Electric Construction Consultancy Project Commitment Trade and Industry Inc., focuses on a Hybrid HPP investment boasting an installed power capacity of 79MW. As of 20.09.2023, changes to the contract have culminated in a finalized contract amount, pegged at 1,046,750,000 TL. This figure is exclusive of VAT but includes the Construction Work Fee.
EUPWR - Contract with Affiliates of İTTİFAK HOLDİNG Inc. EUPWR has made significant inroads in the solar panel supply industry through its 60% owned subsidiary, and Venture Electric Industry Commitment and Trade Inc.'s indirect subsidiary, PEAK PV SOLAR TECHNOLOGIES Inc. This entity has recently penned a substantial contract with İTTİFAK HOLDİNG Inc.'s affiliated businesses, namely Adese Real Estate Investment Inc. and Selva Food Industry Inc. The contract, excluding taxes, is valued at a formidable 5,914,228 USD. For stakeholders who prefer to monitor financials in local currency, this translates to 159,908,895 TL, based on the prevailing USD/TL exchange rate.
EUPWR - Domestic Group Companies Partnership In another significant move, EUPWR's subsidiary, PEAK PV SOLAR TECHNOLOGIES Inc., has further expanded its footprint by sealing a contract with domestic group companies. This deal, focusing on the solar panel supply chain, is estimated to be worth 4,792,960 USD before taxes. Utilizing the current USD/TL conversion rate, this amount equates to 129,592,050 TL.
ADESE and SELVA Enter Solar Contracts with PEAK PV SOLAR TECHNOLOGIES Both ADESE and SELVA have successfully signed contracts with PEAK PV SOLAR TECHNOLOGIES A.Ş. for the procurement of solar panels. ADESE's contract, before taxes, stands at 3,304,063 USD (equivalent to 89,328,316 TL based on the current exchange rate). On the other hand, SELVA's agreement is valued at 2,610,164 USD (translating to 70,568,132 TL using the prevailing exchange rate). These contracts signify the companies' commitment to sustainable energy and underline their endeavours in the renewable sector.
SAMAT Clears Debts and Prepares for Property Transfers SAMAT announces that as of 19.09.2023, it has cleared all outstanding debts arising from its financial leasing contracts with QNB Finans Financial Leasing A.Ş., based on the sale-leaseback method. This development paves the way for the transfer of movable and immovable assets associated with these contracts. The company has initiated preparations for the imminent property transfers.


 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.