Morning Note /
Turkey

Turkey: BIST 100 will close the year as one of the worst performing EM indexes

  • Yesterday, after opening positively, the BIST 100 index faced weakness

  • Today we expect a flat opening

  • Industrials were under heavy selling pressure yesterday, so a recovery attempt can be seen today

Batuhan Ozsahin
Batuhan Ozsahin

Strategist

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ATA Invest
31 December 2021
Published byATA Invest

BIST 100 will close the year by one of the worst performing EM indexes in MSCI. Yesterday after opening positively BIST 100 index faced weakness and closed the day at 1,863 level. Today we expect a flat opening. Industrials were under heavy selling pressure yesterday. So, a recovery attempt can be seen in industrial s today. The buy backs continue in the market and Isbank announced to continue buy back in its subsidiaries in 2022 as well. Daily resistance level is 1,900-1,920

Company news:

  • BIMAS TI> bought back 100K shares at an average price of TL63.17 on 30 Dec 2021. Since 6 Dec 2021, the total number of shares bought back reached 2.7mn at an average price of TL70.62.

  • TAVHL TI> operating period for Madinah Airport has been extended. <Positive> The time that will pass between February 2020 and the end of the calendar year during which Madinah Airport reaches 8.1mn passengers, has been defined as the force majeure period which will be added to the operating period of Madinah Airport. The additional time that will be added to the operating period of the concession cannot be longer than 8 years. The concession rent payments during the force majeure period have been deferred and will be paid mostly after the end of the force majeure period. Analyst Comment: TAVHL owns 50% equity stake in TIBAH which operates Madinah Airport. Before the extension concession period was going to end in June 2037. We expect Madinah Airport to reach 8.1mn PAX in 2024E, which means according to our estimates TIBAH will receive 4 years extension period. We rate this news as “Positive”.

  • TOASO TI> due to the year-end stock counting, programmed maintenance & refurbishment manufacturing activities will be suspended from Jan 1st, 2022 to Jan 9th, 2022. <Neutral>

  • DARDL TI> revised down its 2021 revenue growth guidance to 30% (+5/-5%) from 40% (+5/-5%) while keeping EBITDA margin guidance at 15% (+2/-2%). <slightly negative>

  • ISCTR TI> announced that the bank continued to buy back its listed subsidiaries of ANHYT, ISFIN, ISGYO, ISMEN, SISE and TSKB shares until the end of 2022. The maximum amount of funds to be allocated for the share buyback as TL1bn. We believe announced share buy-back programme will have slightly positive impact on share performance.

Weekly Agenda:

  • Dec 31: November trade balance (consensus -USD5.3bn)

We wish all our colleagues and clients a happy new year.