Morning Note /
Global

Turkey: Negative de-decoupling continues

  • The magnitude of negative de-coupling in Turkish equities is increasing by the day.

  • Lira is reacting negatively and is down 1%, touching as low as 8.30 against USD.

  • Global markets are positive, UST10s are down, DXY is down, hence we could see a limited reactionary buying

ATA Invest
22 April 2021
Published byATA Invest

The magnitude of negative de-coupling in Turkish equities is increasing by the day. There are a couple of reasons 1) US President Biden could recognize 1915 events as genocide on April 24th, further straining Turkey-US relations. 2) High new infection rates could require a more stricter lockdown over the next 2-3 weeks at least.

Lira is reacting negatively and is down 1%, touching as low as 8.30 against USD. Volumes have collapsed but heavy selling in mid and small caps, which defied the decline so far, have pressured the index down to its 200-day SMA 1314. Global markets are positive, UST10s are down, DXY is down, hence we could see a limited reactionary buying. However, as tomorrow is a holiday and markets will be closed, there will not be many risk takers ahead of the long weekend.

Company news:

GWIND: The new IPO Galata Wind will start trading today with GWIND TI ticker.

YATAS: 470k was bought back by the company within TL 16.95-16.99 band

THYAO: Turkish Airlines CEO said that Flights from Denmark and UK will resume soon.