Morning Note /
Global

Turkey: Equities ended the day with the smallest increase in two weeks

  • The state banks, Halk & Vakıf were both outperformers as the deals signed with UAE sovereign fund

  • We do not think UAE would like to invest in state banks

  • The global markets are in a risk-off mode with the new Covid variant

Batuhan Ozsahin
ATA Invest
26 November 2021
Published by

Equities ended the day with the smallest increase in 2 weeks as the inflation hedge angle was a little overbought. The state banks, Halk & Vakıf were both outperformers as the deals signed with UAE sovereign fund was perceived as some type of partnership for companies that are in the portfolio of Turkey’s sovereign fund. We do not think UAE would like to invest in the state banks.

The global markets are in a risk off mode with the new Covid variant and it will also be a reason for some profit taking. Tupras is also correcting in the last few days after going up 75% in the past 2 months and a breather makes sense in our view. If there is a good a correction in aviation stocks like last Friday, it could be a good entry point for those stocks.

Company news:

Pegasus <PGSUS TI> announced that they have filed the draft prospectus for IPO of its associate company Hitit Bilgisayar Hizmetleri A.Ş. <Neutral> Previously PGSUS announced on 02.07.2021 that they have decided to explore IPO opportunities with their associate company Hitit Bilgisayar Hizmetleri A.Ş. (“Hitit Bilgisayar”) Hitit Bilgisayar was established in 1994 and merged with its related company Hitit Yazılım A.Ş in 31 December 2014. The scope of operations of Hitit Bilgisayar is to develop software solutions for airlines and travel agencies as well as airports. Pegasus owns 50% of Hitit Bilgisayar Hizmetleri A.Ş. Hitit Bilgisayar posted 88.1mn TL revenue and 28.8mn TL net income in 2020 full year. Pegasus’s share from profit was 14.4mn TL in 2020. Analyst comment: Compared to Pegasus’s revenue and asset size, Hitit Bilgiyasar is a small company. However we believe IPO will unlock Hitit Bilgisayar’s hidden value.

ENKA:Chairman Sinan Tara bought 150K shares within TL14.70-15.10 range.