Morning Note /
Global

Turkey: The markets are signalling another weak opening

  • We are starting the day with global inflation and recession worries

  • Yesterday BIST 100 broke down important support levels and closing was at the day low

  • The short-term outlook seems foggy yet price levels are extremely attractive for mid-long term prior 2Q22 financials

ATA Invest
30 June 2022
Published byATA Invest

We are starting the day with global inflation and recession worries and the markets are signalling another weak opening. Yesterday BIST 100 broke down important support levels and closing was at the day low. Today we expect a weak opening and recovery attempts may be likely during the day yet we expect a pullback towards 2380-2370 levels.

For a positive momentum to start again BIST-100 should breach back 2,500 resistance again. The short-term outlook seems foggy yet the price levels are extremely attractive for mid-long term prior to 2Q22 financials.

Company news:

*SISE TI> bought back 950k shares at an average price of TL21.11 on 29 June 2022. Since February, 26 2021, the total number of shares bought back reached 85.5mn at an average price of TL13.83.

*SAHOL TI> bought back 500K shares at an average price of TL19.85 on 29 June 2022. Since 09 Nov 2021, the total number of shares bought back reached 52.0mn at an average price of TL16.55. SISE Board's initiated additional buyback program and the company decided to increase the amount of the fund for the allocation of the share buy-back to TL4.2bn from TL1.2bn

*MPARK TI> announced that Medicalpark and Bona Dea Limited Liability Company ("Bona Dea") signed management service contract regarding to operate Bona Dea International Hospital in Baku, Azerbaijan to promote strong brand name and high quality healthcare services of Liv Hospital abroad (positive). According to the company’s announcement the contract is valid for 10 years and MLP Care has an option to extend it for additional 5 years. MLP Care takes over the management of the Bona Dea company and the hospital and Liv Bona Dea Hospital will start its operations on August 1, 2022 at latest with this agreement. The company did not share any guidance regarding revenue or EBITDA impact of this management service contract but we believe that this management service contract in premium concept will be positive for the revenue and EBITDA contribution in the long term. Currently, Medicalpark has c.5,300 beds capacity in Turkey. Please note that, Liv Bona Dea Hospital has 156 bed capacity and 28 intensive care units in approximately 37,500 m2 closed areas. After this agreement total hospitals, operated by Medicalpark increased to 28 from 27. Liv Hospital concept targets the premium segment in Medicalpark's hospital portfolio and we believe that Liv Bona Dea Hospital will support the company’s growth in the premium segment abroad.

*MPARK TI> bought back 71K shares at an average price of TL33.17 on 29 June 2022. Since 25 May 2022, the total number of shares bought back reached 1.2mn at an average price of TL34.64.

*VESBE TI> will pay 0.436443/share dividend and teh reference price will be TL 9.264

*KCAER TI> Kocaer Celik Sanayi will start trading in BIST today and the IPO / reference price is TL 27.5

Weekly Agenda:

June, 30: June Foreign Trade Indices

June, 30: BRSA Weekly Banking Sector Data