Morning Note /
Turkey

Turkey: This week CBRT will announce its rate decision

  • BIST 100 almost touched 2.900 level and faced weakness and closed at 2.864 on Friday

  • Global equities are resilient this morning and we expect a flat opening in BIST today

  • Margins were very strong back in 2Q which signals a strong 2Q results for TUPRS

ATA Invest
15 August 2022
Published byATA Invest

BIST 100 almost touched 2.900 level and faced weakness and closed at 2.864 on Friday . Global equities are resilient this morning and we expect a flat opening in BIST today. Today TUPRS and PGSUS will post 2Q results. Margins were very strong back in 2Q which signals a strong 2Q results for TUPRS. This week CBRT will announce its rate decision. We expect no change in rates this week. Aviation companies, TUPRS and ALARK are the technically recommended names this week.

Moody’s downgrades Turkey’s rating to B3 and changes the outlook to stable

Company news:

*MPARK TI> bought back 105K shares at an average price of TL40.42 on 12 August 2022. Since 25 May 2022, the total number of shares bought back reached 2.2mn at an average price of TL36.00.

*SAHOL TI> bought back 1,350K shares at an average price of TL23.77 on 12August 2022. Since 09 Nov 2021, the total number of shares bought back reached 62.5mn at an average price of TL17.19.

*HALKB TI> reported 2Q22 net income of TL2,575mn (+27% q/q), 6% higher than our and consensus estimate. The key highlights of 2Q22 were 1) 2Q ROE improved only 40bps q/q to 15.8% in 1Q21, while ROA finally climbed to 1% from 0% same period 2021 2) Core revenues were up 36% q/q(YKBNK 61%, Akbank 54%) to TL14.2bn driven by higher net interest income(+36% q/q), 3) Quarterly swap adjusted NIM improved 100bps q/q to 5.8% 4) Net Fees& Commissions were up 36.3% q/q, while Opex as up 18,7%. Fee coverage of opex) climbed to 47% in 1H22 from 40% in 1H21. 5) The most eye-catching development in Halkbank’s 2Q results are the blow-op of provisions and low collection performance. Provisions were up 146% q/q and are up 968% y/y for the 1H. Net total cost of risk increased to 453bps in 2Q from 168bps in 1Q. Halkbank shares trade at 2.9x 22E P/E and 0.3x P/B, implying 8% and 229% premium its 5yr average, respectively.

Weekly Agenda:

Aug 15: 2Q unemployment rate

Aug 15: TUPRS 2Q22 NI cons TL 6.961 mn

Aug 15: PGSUS 2Q22 NI cons TL -861 mn ATA -805 mn

Aug 15: BIZIM 2Q22 NI cons TL 31 mn ATA 27 mn

Aug 17: ENKAI 2Q22 NI cons TL -646 mn

Aug 17: ULKER 2Q cons NI: TL -265 mn ATA TL -414 mn

Aug 17: BIMAS 2Q cons NI: TL 1.621 mn ATA TL 1656 mn

Aug 18: CBRT rate decision no change expected

Aug 18: TCELL 2Q22 NI cons TL 895 mn ATA 1109 mn

Aug 18: DOAS 2Q22 NI cons TL 1563 mn ATA 1538 mn