Morning Note /
Global

Turkey: We expect a negative opening

  • Europe’s struggle with worst energy crisis is bringing a risk-off mode to the equities

  • Today we will hear Aug inflation figure where ATA expects 2.20% and the consensus is 2.09%

  • Daily resistance levels are 3.230-3.250

ATA Invest
5 September 2022
Published byATA Invest

Europe’s struggle with worst energy crisis is bringing a risk-off mode to equities. Although BIST 100 decouples from world equities lately today we expect a negative opening in line with global markets futures.

Today we will hear the August inflation figure, where ATA expects 2.20% and the consensus is 2.09%. Daily resistance levels are 3.230-3.250. Major support lies at 3.170 and unless it is broken down we do not expect strong weakness in the index.

Macro news:

*According to Ministry of Trade, foreign trade deficit increased by 161.8% y/y to US$11.28bn in Aug’22. The proportion of imports covered by exports declined by 1,598bps y/y to 65.4% in Aug’22. Exports increased by 13.2% y/y to US$21.34bn while imports increased by 40.8% to US$32.62n in Aug’22. The foreign trade deficit declined by 146.4% y/y to US$73.46n in 8M22.

Company news:

*MPARK TI> bought back 70K shares at an average price of TL41.82 on 2 September 2022. Since 25 May 2022, the total number of shares bought back reached 3.2mn at an average price of TL37.61.

*Turkish Automotive: August 2022 - Domestic Sales: LV sales declined by 17.3% y/y to 48.3K in Aug 2022, lower than our estimate of 61.2K. Turkish Light Vehicle (LV) sales declined by 17.3% y/y to 48.3K units in Aug’22, 21% lower than our estimate of 61.2K units at the beginning of the month. On a segmental basis, P. Car sales declined by 21.3% y/y to 35.2K units whereas LCV sales increased by 4.3% y/y to 13.1K units in Aug 2022. Our estimate for 2022E LV sales is 754K, implying 2% y/y increase.

Weekly Agenda:

Sep 5: Aug CPI ATA 2.20% consensus 2.09%

Sep 6: Aug REER

Sep 8: BRSA Weekly banking sector data