TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

CBRT AND TEAM SHOWS IT MEANS BUSINESS
• The BIST100 managed to pare its losses from Thursday, after the surprising higher-than expected 750bps rate hike from the MPC, ending the week 3% higher at 7717, and with a turnover of TRY 157bn, thanks to the gains in the Energy and Service stocks, whereas the Banks fell by a little over half-percent, with the exception of ISCTR, closing 3.78%, alongside its subsidiaries-to which we will get into more detail at the bottom. The gains in the renewable Energy stocks-such as ALFAS-ASTOR SMRTG and KONTR, was also noteworthy.
• Today, we expect a positive opening at the BIST, parallel to the positive mood in the global markets, levied by China’s trimming of the stamp duty on stock trades as to “invigorate the capital market and boost investor confidence.”
• For the week, the BIST100 closed 2.72% higher, led by the 6% gains in the Banks, and 4.62% rise in the Energy stocks, whereas the Congs and Industrials rose a little more than 2%. The gains in the Transportation stocks were grounded, due to the rise in the global Covid cases, dropping aby nearly 5%.
• Last week the TRY strengthened against both the USD and the Euro, primarily thanks to the CBRT rate hike, by 2.04% and 2.86, respectively, but pared Thursday’s gains. As of Friday’s close, the TRY is trading stronger against the USD at 26.50, but flat against the Euro at 28.66, whereas the DXY has slid slightly to 104.04, as of print.
• Fed President Jerome Powell warned that further interest rate increases could be necessary in the fight against inflation, but added “that the U.S. central bank intends “to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.” The hawkish statements thus brought sales in the US markets and strengthened the USD against the global currencies.
• The 2yr Turkish Bonds rose by 19.31% last week to 21.56%, whereas the 10yr rates were more stable, moving less than a percent higher to 19.29%.
• On the commodity front, Brent has started the week lower at USD 84.07, and ounce and gram GOLD are relatively calm at USD 1917 and TRY 1633, respectively.
• Foreign Tourist Arrivals rose by 7.25% y/y to 7.148mn
• Federal Reserve Bank of Cleveland President Loretta Mester said on Friday it's quite possible the central bank will raise rates again. She said the key issue for the central bank is to decide how restrictive monetary policy needs to be, and how long it needs to stay at those levels.
• The Minister of Finance and Economy, Mr. Mehmet Simsek stated that thanks to the boom in both tourism, as well as the slowdown in consumer loans, he expected the current account balance to lessen.
AGENDA:
• This week, local investors will be tracking the Economic Confidence figures, Trade Balance, the GDP growth rates (BBGe: +3.1% y/y), MPC Summary Notes, and the PMI figures, whereas our international colleagues will be following the ADP Employment Report, GDP growth rate PMI and the NFP from the US, whereas the Eurozone will be releasing the Expected CPI figures, Unemployment and PMI.
• Please note that while the UK markets will be closed today, Turkey will be closed on Wednesday.
CORPORATE NEWS:
• BRSA: The BRSA has lowered the loan conditions for consumers who already own a house. As such, loan rate for second home purchases will be reduced by 75%. We deem this news negative especially for EKGYO and its peer REITs.
• ISCTR: Disclosed that it will merge all its wholly-owned subsidiaries, such as SISE, TSKB, ANHYT-ANSGR-ISGYO-and ISMEN, under a new company, as to improve operations. The merger is expected to be completed by the end of the year. This transaction will not trigger any tender offer as simplified method will be used.
• ASELS: Disclosed that it has signed a USD 87.3mn agreement with the Turkish Air and Space Agency (TUSAS) to be exported to an int’l client.


 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.