Morning Note /
Turkey

Turkey: Markets are starting this week in a positive mood

  • Turkish equities closed last week at record levels

  • Lira’s recent weakness and increasing energy prices will continue to put pressure on inflation

  •  Lira weakness will continue to support hard currency earners like Erdemir, Tupras, Arcelik, Sise and Otosan

Batuhan Ozsahin
ATA Invest
6 June 2022
Published by

Markets are starting this week in a positive mood and Turkish equities closed last week at record levels. Although May CPI surprised on the downside, Lira’s recent weakness and increasing energy prices will continue to put pressure on inflation. Turkey’s energy bill is a black hole and it will continue to suck up all positive cash from exports & tourism, increasing the need for further hard currency. CA deficit is being financed by seeling of CBRT reserves & increase in corporate borrowing.  Lira weakness will continue to support hard currency earners like Erdemir, Tupras, Arcelik, Sise and Otosan

Company News:

Bim<BIMAS> revised up its cash dividend distribution amount to TL3/shr from TL2/shr to be paid in two tranches. (slightly positive)

Bim Board was previously planning to propose to the General Assembly to pay TL2/shr cash dividend to be distributed on June 17. Now, the Board decided to increase this amount to TL3/shr to be paid in two tranches, TL1.5 on June 17 and TL1.5 on 16 Dec.

General Assembly will take place on June 7th.

Migros <MIGROS> opened 14 net new stores and reached 2,645 stores in May. (neutral)

Migros opened a sum of 17 new stores in May 2022, including 8 Migros, 8 Migros Jet and 1 Macrocenter format stores and closed 3 stores.  Migros’ number of stores increased by 14 to 2,645 as of May-22-end.

Medicalpark <MPARK TI> bought back 41K shares at an average price of TL36.69 on 3 June 2022.

Since 25 May 2022, the total number of shares bought back reached 426K at an average price of TL35.66.

Macro Agenda:

 June 6: Real Effective Exchange Rate

June 7: May Cash Budget Balance( April -TRY43.7bn)

June 10: April Unemployment rate( March 11.5%)