Morning Note /
Global

Turkey: Today a weak opening is likely but we may see recovery

  • Turkish equities faced the sharp correction which was long awaited yesterday following the US inflation figure

  • Not only Turkish but all global markets closed in red

  • Although the strong support was broken in BIST 100 yesterday, it is so early to expect the start of bear market

ATA Invest
14 September 2022
Published byATA Invest

Finally Turkish equities faced the sharp correction which was long awaited yesterday following the US inflation figure which was hotter than expectations and which confirmed high FED rate hikes.

Not only Turkish but all global markets closed in red with strong profit-taking sales. The US inflation figure was a good excuse for the profit-taking sales in Turkish equities as banks more than doubled since mid-August.

Although the strong support was broken in BIST 100 yesterday, it is so early to expect the start of a bear market. Today a weak opening is likely but we may see recovery attempts and high volatility. We remain positive with the companies we have been recommending like aviation companies TOASO KCHOL.

Macro news:

Industrial Production (IP) declined by 6.2% m/m in Jul’22 (+3.1% y/y). Industrial production increased by 3.1% y/y in Jul’22 (Jun’22: 8.7% y/y) Industrial production* increased by 8.2% y/y in 7M22.

Company news:

Borsa Istanbul announced uptick rule in BIST 50 sales today following the sharp sell-off yesterday.

MPARK TI> bought back 57K shares at an average price of TL46.30 on 13 September 2022. Since 25 May 2022, the total number of shares bought back reached 3.6mn at an average price of TL38.24.

SAHOL TI> bought back 1mn shares at an average price of TL28.33 on 13 September 2022. Since 09 Nov 2021, the total number of shares bought back reached 64.9mn at an average price of TL17.53.

Weekly Agenda:

Sep, 15: August Home sales statistics prior 93.9k

Sep, 15: BRSA Weekly Banking sector data

Sep, 16: Sep CBRT Survey of participants