Morning Note /
Turkey

Turkey: We expect another positive opening today

  • Earnings season starts with Arcelik, Tofas and Yapı Kredi reporting today

  • We will be seeing peak earnings by 2Q for most companies in our view

  • Banks, food retail and aviation( except for Pegasus) will stand out in terms of earnings growth in 2Q

ATA Invest
26 July 2022
Published byATA Invest

Earnings season starts with Arcelik, Tofas and Yapı Kredi reporting today: Akbank on Wednesday and Garanti On Thursday. Reporting period will end on August 19th but all blue-chip companies will have reported by Aug. 11. We will be seeing peak earnings by 2Q for most companies in our view, even banks will see some q/q slowdown with loan growth slowdown and regulatory changes affecting profitability. Banks, food retail and aviation( except for Pegasus) will stand out in terms of earnings growth in 2Q. With the leadership of the banking sector shares BIST-100 closed at 2,548 level yesterday. Today we expect another positive opening in the market yet 2.560 is the daily resistance level. Eyes will be on FED decision tomorrow.

Macro news:

Manufacturing Capacity Utilization Rate (CUR) increased by 150bps y/y to 78.2% in Jul’22. (60bps m/m) Seasonally adjusted Manufacturing CUR increased by 170bps y/y to 78.1% in Jul’22 (60bps m/m).

Company news:

* MPARK TI> bought back 36K shares at an average price of TL39.98 on 25 July 2022. Since 25 May 2022, the total number of shares bought back reached 1.8mn at an average price of TL34.94.

*AUTOS: June 2022: Exports increased by 22.9% y/y to 86.6K units… On a segmental basis, passenger car (PC) exports increased by 36.2% y/y to 55K units in Jun’22, whereas LCV exports increased by 2% y/y to 29K units during the same period. HCV exports were up by 59% y/y to 2.5K units in June 2022.

*TCELL TI> distributes 0.5717157 /share dividend and the reference price will be TL 17.208

Weekly Agenda:

 July 26: TOASO 2Q22 cons NI TI 1,650 mn ATA: 1,670 mn

July 26: YKBNK 2Q22 cons NI TI 10,651 mn ATA: 10,388 mn

July 26: ARCLK 2Q22 cons NI TI 487 mn ATA: 513 mn

July 27: TAVHL 2Q22 cons NI TI 502 mn ATA: 563 mn

July 27 AKBNK 2Q22 cons NI TI 11,544 mn ATA: 12,078 mn

July 28: GARAN 2Q22 cons NI TI 11,568 mn ATA: 11,885 mn

July 28: FROTO 2Q22 cons NI TI 3,183 mn ATA: 3,162 mn

July 28: July Economic confidence

July 28: CBT inflation outlook

July 29: Trade Balance

July 29: Foreign Tourist Arrivals