Morning Note /
Turkey

Turkey: Global risk-on mode continues

  • Turkish equities also reversed the declning trend this week with a strong start

  • With 3Q results coming in 2 weeks time

  • The index will probably hit its first strong resistance at 3500

ATA Invest
5 October 2022
Published byATA Invest

Global risk on mode continued with much weaker than expected US JOLTS data, as the talk of FED pivoting gained more traction and DXY declined from a peak of 115 last Wednesday  to 110. After last FED hike in September, odds of a rate cut in 2023 had disappeared but recent weaker data is showing signs of rate cut possibility in Nov 23 and with more weakening data, the rate hikes in 2022 could be the last.

Turkish equities also reversed the declning trend this week with a strong start on Monday and yesterday. With 3Q results coming in 2 weeks time, we are seeing interest in companies that will post strong results, i.e aviation, autos, banks and retailers. The index will probably hit its first strong resistance at 3500 but as long as USD remains tamed, risk appetite should continue.    

Company news:

Borsa Istanbul will stop applying the uptick rule in BIST 50 short sales except for TSKB TI & ISGYO TI as of today.

* MPARK TI> bought back 50K shares at an average price of TL51.63 on 4 October 2022. Since 25 May 2022, the total number of shares bought back reached 4.0mn at an average price of TL39.24.

Weekly Agenda:

Oct, 6: BRSA Weekly banking sector data