Morning Note /
Turkey

Turkey: Recession fears are driving the trend in global markets again

  • Risk appetite is still very low

  • We are starting the second half of 2022 and 1H was difficult for all markets

  • Today we are expecting to hear the new minimum wage announcement

ATA Invest
1 July 2022
Published byATA Invest

Recession fears are driving the trend in global markets again. Risk appetite is still very low. We are starting the second half of 2022 and 1H was difficult for all markets. Turkish equities fell below 2,400 support level yesterday but recovered quickly and closed slightly above this level. Today we are expecting to hear the new minimum wage announcement. Today we expect another negative opening in the market towards 2,380-2,365 band.

Macro news 

Foreign trade deficit increased by 155.2% y/y to US$10.60bn (73.0% m/m) in May’22. Proportion of imports covered by exports declined by 1,569bps to 64.2% in May’22. Net gold imports realised as US$1.3bn in May’22 (May’21: -US$49mn). Gold trade excluded proportion of imports covered by exports declined by 1,228bps y/y to 67.1% in May’22. Germany got the first spot in the major export destinations with US$1.49bn (6.1% y/y) in May’22. Exports to USA (stands as the second major export destination) increased by 10.4% y/y to US$1.27bn in May’22. Russia got the first spot in the major import destinations. Imports from Russia increased by 117.6% to US$4.49bn in May’22. Imports from China (stands as the second major import destination) increased by 22.9% y/y to US$3.23bn in May’22.

Company news:

* MPARK TI> bought back 75K shares at an average price of TL32.63 on 30 June 2022. Since 25 May 2022, the total number of shares bought back reached 1.2mn at an average price of TL34.52.

*SAHOL TI> bought back 1mn shares at an average price of TL18.92 on 30 June 2022. Since 09 Nov 2021, the total number of shares bought back reached 53.0mn at an average price of TL16.60.

*KOZAL TI> announced to distribute TL 2.68 bn dividend form the last 6 years distributable income. The dividend yield corresponds to 10.3%.

*OTKAR TI> has been the sole bidder for in Istanbul electric minibus tender

Weekly Agenda:

July,1: June Markit Manufacturing PMI