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Turkey: We expect a negative opening

  • Today we start the day with TL depreciation
  • After testing 8.77, TL/USD is around 8.61 levels this morning
  • Yesterday evening President Erdogan renewed his call for lower interest rates

Today we start the day with TL depreciation which was higher late at night when the Turkey market was closed. After testing 8.77, TL/USD is around 8.61 levels this morning. Last night President Erdogan renewed his call for lower interest rates and mentioned he spoke with the CBT governor about this issue.

Banking sector shares have been performing slightly better than industrials lately due to the stability in TL, yet that may now be over. BIST 100 was able to close above 1,430 resistance yesterday, however we expect a negative opening in the market today towards 1,420 level.

Company news:

ATPTP: will start trading in BIST on June, 4th

ASELS: acquired TL227mn (US$27mn) project from Samsun Metropolitan Municipality regarding the Electronic Inspection System, Variable Message Sign and Smart Intersection Management Material Sourcing and Assembly work. The project is scheduled to be delivered in 2022. The acquired project accounts for 0.3% of US$9.0bn backlog (as of 1Q21-end). We consider that the contribution of the project will be slightly positive.

Weekly Agenda:

June 3: May inflation number ATA exp: CPI 1.44% m/m, cons: 1.5%

June 4: May REER (prior 62.29)

June, 4: Moody's Turkey Rating Decision


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