Morning Note /
Turkey

Turkey: Market could open slightly positive

  • Turkish equities opened strong, BIST 100 tested 5300 level but sales occurred in PM session.

  • BIST 100 managed to close above 5,000 support level which is the initial support level for today.

  • Late at night we heard that FED hiked the rates by 50 bps

ATA Invest
15 December 2022
Published byATA Invest

Turkish equities opened strong, BIST 100 tested 5300 level but sales occurred in PM session due to the Istanbul mayor’s court decision yesterday. BIST 100 managed to close above 5,000 support level which is the initial support level for today. 4,900 support level will be followed in case 5,000 will be broken down. Ekrem Imamoglu will not be banned from politics until the higher court’s decision which usually takes more than a year. However, a decision may be out sooner as well. Today the market may open slightly positive with reactionary buying but volatility should be expected during the day. Late at night we heard that FED hiked the rates by 50 bp which was in line with expectations yet the wording was still hawkish and US equities faced weakness following the announcement yesterday

Macro and Political news:

Istanbul mayor Ekrem Imamoglu faced a political ban following the court ruling which sentenced him to 2 years and 7 months in prison. Higher courts decision is necessary for him to leave his post at the Istanbul municipality.

Company news:

*ARCLK TI> Arcelik’s max acquisition price for Indesit International and Whirlpool Russia is finalized at Euro261mn ( previously Euro220mn) to be paid in 10 years. (neutral) A Share Purchase Agreement ("the Agreement") was signed by Arçelik A.Ş. with Whirlpool EMEA S.p.A for the purchase of the entire issued share capital of IHP Appliances JSC and IHP Appliances Sales LLC, which operate in Russia, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, Armenia, Georgia, Azerbaijan, Kazakhstan, Belarus, Mongolia (“Relevant Countries”) and transactions were completed as of August 31, 2022. Regarding this transaction ( completed as of August 31 2022) but final price is set at Euro261mn now): We believe this transaction might be value-enhancing for Arcelik. This transaction is expected to be completed by late Sept 2022. Considering that the payment will take place throught the following 10 years, cash outflow impact is likely to limited. In the short-term, growth contribution could be limited but might accelerate in the following 3-5 years, depending on the developments in the region. We do not have details about the financial details of Indesit International and Whirlpool Rus. Considering the production capacity (washing machines and refrigerators) of 2.8mn units and approximately 2,500 employees in these companies, the size of the business could be considered material compared to Arcelik’ production capacity of c.20mn units and c.40,000 employees globally.

* MPARK TI> bought back 17K shares at an average price of TL78.96 on 14 December 2022. Since 25 May 2022, the total number of shares bought back reached 6.8mn at an average price of TL49.44.

Weekly Agenda:

Dec,15: Oct Home sales statistics

Dec, 15: BRSA weekly Banking sector Data

Dec,16: Oct CBRT survey of Participations