Yesterday BITS 100 fell 5% an hour before closing and triggering the circuit breaker. There was significant foreign selling in the market and the main reason was the squeeze in swap markets. Global markets are signalling a positive opening in BIST, however illiquidity in TL may lead to further sales in the market. The volatility is still huge and the closing yesterday was below an important support level. 3.170-3.150 are the daily support levels. 3.220 should be broken up for further buying in the market.
Company news:
Borsa Istanbul announced uptick rule again in BIST 50 short sales today
*ISCTR: Isbank and Denizbank (owned by Emirates NBD bank) announced that they stopped using Russian Mir payment system.
*MPARK TI> bought back 38K shares at an average price of TL47.50 on 19 August 2022. Since 25 May 2022, the total number of shares bought back reached 3.7mn at an average price of TL38.47.
*SAHOL TI> bought back 870K shares at an average price of TL26.60 on 19 September 2022. Since 09 Nov 2021, the total number of shares bought back reached 66.8mn at an average price of TL17.79.
*MAVI TI> 2Q22 Results: Mavi posted TL407mn net income, beating the consensus estimates of TL323mn (positive, not rated) Mavi realised TL2,362mn net sales, implying 107% y/y growth in 2Q22, 5% lower than the consensus estimate of TL2,362mn.The company’s gross margin improved by 299bps y/y to 55.6% while the company’s OPEX/Net Sales ratio declined to 36.5% in 2Q22 from 36.8%% in 2Q21. The company reported 24.5% EBITDA margin, implying 42bps y/y improvements in 2Q22.In Turkey, Mavi closed 1 net retail stores in 2Q22. As of 2Q22, Mavi’s total store number in Turkey is 398 (retail: 329 and franchise: 69). Internationally, the company opened 5 net new stores bringing the total number of stores to 63. (Canada:4, Europe: 1, Russia: 19, rest of the world: 24) The company revised up its 2022 guidance. The company revised up its revenue growth guidance to 120% from 100% (2) store expansions guidance to 13 from 11 (3) EBITDA Margin (exc. IFRS-16) guidance to 19.0% (+/-0.5%) from 18.0% (+/-0.5%) for 2022E. The company revised down its EBITDA Margin (inc. IFRS-16) guidance’s upper and lower band 24.0% (+/-0.5%) from 24.0% (+/-1%) while the management maintained its 3 net store opening guidance and CAPEX guidance of 3% of sales. Trading update for 3Q22: Turkey retail sales increased 153% y/y in Aug’22 yoy and 141% y/y in the first 18 days of Sep’22. Online sales in Turkey grew 95% y/y in Aug’22.
Mavi will hold a teleconference today at 16:00 Istanbul time.
Weekly Agenda:
Sep, 22: Sep Consumer confidence index
Sep, 22: CBT rate decision
Sep, 22: BRSA Weekly banking sector data