Morning Note /
Global

Turkey: The inflation & earnings season rally is in full swing

  • It was the state banks that boosted the banking shares yesterday

  • The foreign investors’ share in the free float in both banks have declined to 1.5%

  • Banks will continue their performance in 2Q

Batuhan Ozsahin
ATA Invest
19 April 2022
Published by

The inflation & earnings season rally is in full swing, led by the banks. It was the state banks that boosted the banking shares yesterday. State banking shares have been perennial underperformers since 2018 and went through two restricted capital increases, in which Turkey’s Sovereign Wealth Fund was the only participated and all other investors were diluted. The foreign investors’ share in the free float in both banks have declined to 1.5%. Banks will continue their performance in 2Q, as strong loan growth and decent economic activity momentum is keeping credit quality in check.

We only should start getting concerned when Lira starts weakening beyond 15 against the dollar, as it will not only deteriorate asset quality but because of the FX-protected deposit scheme, the burden on the central budget would create further weakness on the Lira.

Macro news:

Company news:

*SAHOL TI> bought back 2,200K shares at an average price of TL20.85 on 18 Apr 2022. Since 09 Nov 2021, the total number of shares bought back reached 40.8mn at an average price of TL15.62.

*ARCLK TI> bought back 160K shares at an average price of TL64.45 on 18 April 2022. Since 02 July 2021, the total number of shares bought back reached 59.7mn at an average price of TL41.35. 

Weekly Agenda:

21 April: April Consumer confidence index

21 April: BRSA Weekly Banking sector data

21 April ALKIM cash dividend payment TL 0.80 /share

21 April AKSA cash dividend payment TL 1.85 /share

21 April TTRAK 1Q22 results

22 April SARKY cash dividend payment TL 0.30 /share

22 April ARCLK 1Q22 results