Morning Note /
Turkey

 Turkey: This is a short trading week

  • Lira is off another 1.5% this morning with news of Turkey seeking the expulsion of 10 ambassadors

  • All other Turkish assets were losing value but only equities held up well, even the banks

  • We will have a bunch of companies reporting this week, with AKBNK, EREGL, TOASO, ASELS, TKFEN, TTRAK, GARAN, FROTO

ATA Invest
25 October 2021
Published byATA Invest

Lira is off another 1.5% this morning with news of Turkey seeking the expulsion of 10 ambassadors after declaring them “persona non grata” for giving support to Osman Kavala’s judicial process regarding whether he has been one of the masterminds of the Gezi events in 2013.

President Erdogan sees this as an interference in Turkey’s internal affairs. We might hear more about any action after today’s cabinet meeting in the evening.

Friday was a day that we saw foreign investors dipping their toes to Turkish equities for the first time since August. Reason? Outlet prices for good companies that are 15% cheaper in USD terms since the beginning of September.

All other Turkish assets were losing value (local currency bonds, hard currency bonds) but only equities held up well, even the banks. Under normal circumstances, banks should perform well with interest rate cuts as they benefit from the duration gap and see their NIM expand in the next 2-3 quarters (and they still will as deposits were being priced at 16% as of Friday and there were record bids for CBRT’s repo facility at 16%).

This is a short trading week because of the Republic day holiday. There will be half a day trading on Thursday and a full day off on Friday. Settlement of Wednesday's trades will be on November 1st Monday and half day Thursday’s on November 2nd Tuesday.

We will have a bunch of companies reporting this week, with Akbank, Erdemir, Tofas, Aselsan, Tekfen and Turk Traktor on Tuesday and Garanti and Ford Otosan on Wednesday.

Company news:

ENKAI: Chairman Sinan Tara bought 150k @ within 10,55 -10,69 band.

Weekly Agenda:

Oct 25: October capacity utilization (September 78.1%)

Oct 25: October real sector confidence( September 113.3)

Oct 25: September trade balance( Survey -USD2.6bn)