Morning Note /
Global

Turkey: We expect a positive opening

  • The banks were in positive territory all day

  • 104m shares of Garanti out of the 2.1bn shares in the free float were tendered in the first day

  • Tender offer continues until May 18th, and the market will be closed on May 2-3-4 for a national holiday

Batuhan Ozsahin
ATA Invest
26 April 2022
Published by

Despite a negative opening after Friday’s sharp sell-off, Turkish stocks managed to close in positive territory, once again de-coupling from the rest of the world.

The banks were in positive territory all day as BBVA’s revised offer for Garanti supported all banking shares. 104m shares of Garanti out of the 2.1bn shares in the free float were tendered in the first day. The tender offer continues until May 18th, and the market will be closed on May 2-3-4 for a national holiday.

Kardemir announced a strong set of 1Q results, while EBITDA/ton contracted q/q. Net cash position improved to TRY5.1bn from TRY2.75bn (maybe there could be a second round of dividends in 2H).

There has been a de-merger of Entek (power generation company) from Aygaz & Koc Holding to Tupras (more details below). At first look, Neutral for Tupras & Koc and positive for Aygaz.

We expect a positive opening.

Macro news:

Manufacturing Capacity Utilization Rate (CUR) increased by 190bps y/y to 77.8% in Apr’22. (+50bps m/m) Seasonally adjusted Manufacturing CUR increased by 190bps y/y to 78.1% in Apr’22 (-10bps m/m).

Company news:

*KCHOL TI AYGAZ TI TUPRS TI > Koc Holding <KCHOL TI> and Aygaz <AYGAZ TI> announced that the companies decided to transfer each of their 49.62% shares of Entek Elektrik Üretim A.Ş. ("Entek") to Tüpraş <TUPRS TI> through a partial demerger transaction. In line with the TUPRS's strategic transition plan, Entek shares with a nominal value of TL943mn, corresponding to 99.24% of the capital of Entek registered in the assets of Koç Holding and Aygaz A.Ş. will be acquired by partial demerger. Due to the takeover by demerger, the issued capital of Tüpraş will be increased by TL24.8mn to TL275.3mn. It has been decided that, issued shares with a nominal value of TL12.4mn will be given to Koç Holding through a partial demerger with the participation model, and issued shares with a nominal value of TL12.4mn will be given to to Aygaz's shareholders through a partial demerger with the share transfer model. After the transaction, Tüpraş will own 99.24% of Entek. Also Koç Holding will not directly own Entek, but will indirectly own through Tüpraş and EYAŞ while Aygaz will not directly own Entek, but will have indirect ownership through Tüpraş (EYAŞ) after the demerger transaction.

*SISE TI> bought back 1.42mn shares at an average price of TL17.78 on 25 April 2022. Since February, 26 2021, the total number of shares bought back reached 58.5mn at an average price of TL11.37.

*TKFEN TI> goes ex-dividend today, paying TL0.69/shr (3.02% div. yield) The reference price will be TL 22.306

Weekly Agenda: 

Apr 26: TKFEN didvidend payment TL0.69/share

Apr 26: TAVHL 1Q22 financials cons TL -467 mn ATA TL -385 mn

Apr 26: ASELS 1Q22 financials cons TL 1,436 mn ATA TL 1,560 mn

Apr 26: TTKOM 1Q22 financials cons TL 539 mn ATA TL 538 mn

Apr 26: TOASO 1Q22 financials cons TL1,064 mn ATA 1,001 mn

Apr 26: FROTO 1Q22 financials cons TL 2,672 mn ATA 2,587 mn

Apr 26: AKBNK 1Q22 financials cons TL 7,369 mn ATA 8,579 mn

Apr 28: TKFEN 1Q22 financials cons TL 745 mn ATA TL 616 mn

Apr 28: THYAO 1Q22 financials cons TL 1,200 mn ATA TL 1,509 mn

Apr 28: TCELL 1Q22 financials cons TL 905 mnATA TL 843mn

Apr 28: TTKOM dividend payment TL 1.42/share

Apr 29: March Trade Balance ( Consensus -USD8.2bn, February -USD7.88bn)

Apr 29: YKBNK 1Q22 financials cons TL 6,088 mn ATA TL 6,436 mn

Apr 29: TURSG dividend TL 0.46/share