Morning Note /
Global

Turkey: Revised buyback price for Garanti

  • After a very sharp sell-off, we would expect the negative global sentiment to drag the index further down

  • However, the revised new buy-back price of Garanti will help the selling pressure in the index to stay more muted

  • Eregli, Kardemir, Tupras could still be under pressure because of the sharp decline in iron ore, oil prices

Batuhan Ozsahin
ATA Invest
25 April 2022
Published by

After a very sharp sell-off from its highs on Friday, to the extent of bringing circuit breakers to many blue chip-names, we would expect the negative global sentiment to drag the index further down.

However, the revised new buy-back price of Garanti, will help the selling pressure in the index to stay more muted. The commodity names, such as Eregli, Kardemir, Tupras could still be under pressure because of the sharp decline in iron ore, oil prices.

Company news:

*GARANTI >Garanti reported bank only 1Q22 NI of TL8,210mn (+107% q/q and +206% y/y), 2% higher than our and 6% higher consensus estimate. The results are announced earlier than previously announced as BBVA increased its voluntary buy-back-price to TL15/share. The new buyback offer will be valid until May 18.

Garanti recorded 17% TL loan growth in 1Q and its swap adjusted NIM climbed to 6.6%, a 40bps q/q improvement, split equally between core NIM improvement and contribution from CPI. Garanti is using 40% Oct-Oct CPI estimate, which will need to revised upwards, as mathematically we need miracles to achieve that. 1Q ROAE climbed to a record 37.5%.

*SAHOL TI> bought back 546K shares at an average price of TL20.48 on 22 Apr 2022. Since 09 Nov 2021, the total number of shares bought back reached 41.6mn at an average price of TL15.71.

*ERBOS TI> goes ex-dividend today, paying TL1.57/shr (1.40% div. yield) The reference price will be TL 111.025

*EKGYO TI> goes ex-dividend today, paying TL0.10/shr (3.53% div. yield) The reference price will be TL 2.807

*ALGYO TI> goes ex-dividend today, paying TL1.65/shr (4.20% div. yield) The reference price will be TL 37.67

*AYEN TI> goes ex-dividend today, paying TL0.1132226/shr (1.40% div. yield) The reference price will be TL 16.887

*SISE TI> bought back 5.11mn shares at an average price of TL17.77 on 22 April 2021. Since February, 26 2021, the total number of shares bought back reached 57.06mn at an average price of TL11.21.

Weekly Agenda:

Apr 25: April Real Sector Confidence( March 108.1)

Apr 25: EKGYO 1Q22 results

Apr 25: April Capacity Utilization( March 77.3%)

Apr 26: TKFEN didvidend payment TL0.69/share

Apr 26: TAVHL 1Q22 financials cons TL -467 mn ATA TL -385 mn

Apr 26: ASELS 1Q22 financials cons TL 1,436 mn ATA TL 1,560 mn

Apr 27: TTKOM 1Q22 financials cons TL 539 mn ATA TL 538 mn

Apr 26: TOASO 1Q22 financials cons TL1,064 mn ATA 1,001 mn

Apr 26: FROTO 1Q22 financials cons TL 2,672 mn ATA 2,587 mn

Apr 26: AKBNK 1Q22 financials cons TL 7,369 mn ATA 8,579 mn

Apr 28: TKFEN 1Q22 financials cons TL 745 mn ATA TL 616 mn

Apr 28: THYAO 1Q22 financials cons TL 1,200 mn ATA TL 1,509 mn

Apr 28: TCELL 1Q22 financials cons TL 905 mnATA TL 843mn

Apr 28: TTKOM dividend payment TL 1.42/share

Apr 29: March Trade Balance ( Consensus -USD8.2bn, February -USD7.88bn)

Apr 29: YKBNK 1Q22 financials cons TL 6,088 mn ATA TL 6,436 mn

Apr 29: TURSG dividend TL 0.46/share