Morning Note /
Turkey

Turkey: We expect a weak opening

  • Global markets are signalling a weak opening for Turkish equities.

  • CBT cut the rates by 150 bp yesterday and signalled another 150 bp cut in November meeting

  • TUPRS and SISE short term trading ideas.

Zeynep Erman
Zeynep Erman

Equity Research Analyst

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ATA Invest
21 October 2022
Published byATA Invest

Global markets are signalling a weak opening for Turkish equities. CBT cut the rates by 150 bp yesterday and signalled another 150 bp cut in November meeting and reach a signal digit interest rate (9%) by December. Despite the rate cuts there was no effect in the markets and BIST 100 closed at 3,900 level. Today a slightly weak opening is likely. We remain our positive stance for the index in the short term and believe the index to test 4,000 levels. TUPRS and SISE short term trading ideas. Today ARCLK will post its 3Q results and we expect weak results. Please recall we have removed ARLCK from ATA top picks with ATA Strategy report this week.

Company news:

*MPARK TI> bought back 145K shares at an average price of TL60.99 on 20 October 2022. Since 25 May 2022, the total number of shares bought back reached 5.0mn at an average price of TL43.24.

 *ALARK TI> bought back 149K shares at an average price of TL62.10 on 20 October 2022. Since March’18 2022, the total number of shares bought back reached 1.8mn at an average price of TL41.91.

*FROTO TI> Board proposed to additional pay TL5.70shr cash dividend (ATA Est.: TL 7.10) from 2021 net income, implying 1.56% dividend yield. This cash dividend implies TL2.0bn cash outflow and 22.7% dividend payout ratio (ATA Est: 28%). Please note that, the company distributed TL4.6bn cash dividend implying 52% payout ratio on 24 March 2022. Ford Otosan Board aims to distribute cash dividend by 30 November 2022.

 Weekly Agenda:

 Oct, 21: Oct Consumer confidence Index

Oct, 21: ARCLK 3Q22