Morning Note /
Global

Turkey: London O/N TRY rates have come down to 16%

  • Extreme volatility in equities continue as some of the best performers of the past 2 months were limit down once again

  • All the TRY short positions to hedge long equities positions forced hedge funds to scramble to fin TRY the past 2 days

  • Banks, aviation should continue to be strong, while we could also see a rebound from steel names, Tupras, Migros.

ATA Invest
23 December 2021
Published byATA Invest

Extreme volatility in equities continues as some of the best performers of the past 2 months like Erdemir, Tupras, Anadolu Efes were limit down once again as short-term Turkey trades went awry with Lira jumping from 18.30 to 12 level overnight.

All the TRY short positions to hedge long equities positions forced hedge funds to scramble to find TRY the past 2 days and implied O/N rates exploded to 367% from 17% on Monday. London O/N TRY rates have come down to 16%, hence the forced selling is over and we expect a bounce back today. Banks, aviation should continue to be strong, while we could also see a rebound from steel names, Tupras, Migros.

Company news:

*ARCLK TI> bought back 486K shares at an average price of TL47.10 on 22 Dec 2021. Since 02 July 2021, the total number of shares bought back reached 36.1mn at an average price of TL33.19.

*BIMAS TI> bought back 100K shares at an average price of TL65.21 on 22 Dec 2021. Since 6 Dec 2021, the total number of shares bought back reached 2.2mn at an average price of TL72.21. Bereket Gida also bought 40k shares at TL 65,23. 

*SAHOL TI> bought back 100K shares at an average price of TL12.60 on 22 Dec 2021. Since 09 Nov 2021, the total number of shares bought back reached 5.5mn at an average price of TL13.64.

*KARSN TI> announced that they won the Mersin municipality bus tender.