TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

• Despite a positive opening, the BIST faced profit-takings towards the close of the day, after peaking at 5569, closing an ambiguous session on a loss of 1.56% at 5404, with a turnover of TRY 116.1bn, with the Industrials and Conglomerates falling 2% and 1.83% lower, and the Banks paring their earlier gains that had reached 5-6% for most Banks, to close the day 0.42% lower, with the Energy stocks continuing to face sharp profit-takings, despite being one of the best performing sectors of 2022.
• At the top of the BIST30 list, GUBRF closed limit-up, and was followed by TUPRS and KOZAL and KOZAA, whereas SASA closed limit-down, due to the extension of its gross settlement rule, alongside HEKTS, and joined at the bottom with VESTL and KRDMD.
• Today, we expect the BIST to rebound after yesterday’s sharp sales, parallel to the gains in the global markets, the U.S. markets optimistic that the Fed may slow down its interest hikes amid the decline in last week’s wholesale and retail sales.
• As of yesterday’s close, the TRY is trading flat at 18.80 against the USD, and 20.45 against the Euro. The DXY has also fallen to below the 101 level to 101.95. The 2yr bond yields rose by 7bps to 10.26%, whereas the 10yr yields closed flat at 10.13%. The 5yr CDS rates fell by 12pts yesterday to 548.
• On the commodity front, Brent rebounded from its USD 89 resistance level, and is trading lower this morning, just shy of the USD 88 ticker, and ounce and gram GOLD are at higher at USD 1933 and TRY 1166, respectively.
• After last night’s cabinet meeting, Turkish President Erdogan disclosed that the ruling AKP party will propose a bill to relieve the debt burden of millions of people. “We are forgiving debt not exceeding 2,000 liras ($106), predating to Dec. 31, 2022, owed to tax offices,” adding that the bill would extend to some traffic penalties and fines owed to public institutions. President Erdogan also added signalled May 14th, 2023, as an appropriate date for the Presidential elections.
• President Erdogan also stated that Turkey would say no support for Sweden’s NATO bid, amid the burning of the Quran.
• At a meeting yesterday in Germany, ECB President Christine Lagarde said that the ECB will do everything necessary to return inflation to its goal, thus signalling to more “significant” interest-rate increases at the upcoming meetings. “We will stay the course to ensure the timely return of inflation to our target,” the ECB president said. “It is vital that inflation rates above the ECB’s 2% target do not become entrenched in the economy.” Meanwhile, governing council member, Peter Kazimir stated yesterday that the ECB should deliver two more interest rate hikes of 50bps each, despite easing inflation, and that is due to lower energy costs on the uncommon warm weather.
• FORD Germany disclosed that it will lay off 3,200 workers.
NEWS FLOW:
• The Turkish Consumer Confidence level reached its highest level since January 2021, to 79, vs 75 last month.
• HOUSING: Details of the New Housing Project have been submitted to the Budget Planning Committee.
• ASUZU: Disclosed that it has signed a distributorship deal with Auto Sueco, a subsidiary of Nors Group in Portugal.
• BJKAS-EYGYO will be subjected to gross settlement until February 23, 2023.
• FRIGO: Frigo-Pak Gida has decided to grant privileges to 50mn shares of their controlling shareholder Merko Gida each with a nominal value of TRY0.01. Shareholders have the right to sell their shares to Merko Gida at TRY6.3 per share. The company has allocated TRY50mn for the purchase of such shares.
• GOODY: Disclosed that it has signed an agreement with its parent company, Goodyear S.A. to extend and borrow a new loan.
• ISSEN: Disclosed that it is looking to move to a bigger factory in India, to buy/rent to double its capacity.
AGENDA:
• There are no local macro releases expected today, whereas on the international front, the main news flow will be the PMIs from the U.S. euro, UK, and Japan, and ECB President Lagarde will also be speaking today.

 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.