Morning Note /
Turkey

Turkey: All eyes will be on inflation

  • BIST 100 started the first day of the year with record

  • Today a flat opening is likely but 5.730 resistance can be tested during the day

  • Daily support levels are at 5.650 and 5.550

ATA Invest
3 January 2023
Published byATA Invest

BIST 100 started the first day of the year with records and closed at 5.661 level. Today eyes will be on inflation data where we expect 2.6% vs consensus of 2.23%. Today a flat opening is likely but 5.730 resistance can be tested during the day. Daily support levels are at 5.650 and 5.550. Telecommunication sector benefits from declining inflation environment and that is why we expect both TTKOM and TCELL to continue outperforming. Please recall TCELL is one of ATA Top picks. We remain positive with TOASO and keep it in ATA top picks.

Macro news:

According to Ministry of Trade, foreign trade deficit increased by 52.0% y/y to US$10.38bn in Dec’22. Proportion of imports covered by exports declined by 767bps y/y to 68.8% in Dec’22. Exports increased by 3.1% y/y to US$22.92bn while imports increased by 14.6% to US$33.30n in Dec’22. Foreign trade deficit declined by 138.4% y/y to US$110.19bn in 2022.

Company news:

*AHGAZ TI> will be increasing its capital via 1,150% bonus issue.

*MPARK TI> bought back 50K shares at an average price of TL88.83 on 02 January 2023. Since 25 May 2022, the total number of shares bought back reached 7.4mn at an average price of TL52.24.

*ASELS TI> acquired US$58mn project from TUSAŞ – Turkish Aerospace regarding avionic systems (slightly positive). The project is scheduled to be delivered during 2024-25. The acquired project accounts for 1% of US$7.6bn backlog (as of 3Q22-end). We consider that the contribution of the project will be slightly positive.

Weekly Agenda:

Jan, 3: Dec CPI cons: 2.23% ATA: 2.6%

Jan, 4: Dec REER Prior 55.65

Jan, 5: Nov USA Trade Balance Cons USD 72 bn