Morning Note /
Turkey

Turkey: We expect the BIST to open positively

  • BIST-100 traded within a narrow band and closed 0.44% lower at 1,385.91.

  • The Fed has maintained its target funding rate and the pace of its asset purchases unchanged.

  • Akbank beat both our and consensus estimates by 9%

ATA Invest
29 April 2021
Published byATA Invest

BIST-100 traded within a narrow band and closed 0.44% lower at 1,385.91. The banking sector index diverged positively, advancing by 0.26%. The Fed has maintained its target funding rate and the pace of its asset purchases unchanged. Chair Powell has underlined that a more persistent overshooting of its inflation target would be required before the Central Bank could discuss rate hikes, and that it would maintain its support for the economy. Following the announcement of this decision, concerns over rising inflation in the US have eased and global risk appetite is expected to remain healthy.

We expect the BIST to open positively and maintain its reactionary uptrend. Akbank beat both our and consensus estimates by 9% but pre-provision income is down 49% q/q, while net interest income including swaps is down 30% q/q. We believe investors will not give much of a credit to the quality of this earnings result.

SUPPORT: 1.374 – 1,315 RESISTANCE: 1.399 - 1.418

Company news:

AKBNK: Akbank posted 1Q21 NI (bank-only) of TL2,027mn (+55% y/y), 9% higher than both our and consensus estimate. The key points of 1Q21 were 1) Net interest income(including swap costs) was down 30% q/q and 38% y/y 2) Quarterly swap adjusted NIM was down 121bps q/q to 240bps, as deposit & borrowing costs soared and CPI linker income declined, 4) Fees & Commissions income was up 42% q/q(+9% y/y as the impact of last year’s regulatory changes started lose their severe impact 5) Akbank’s outstanding risk from deferred payments(which started during the initial phase of the pandemic) declined to TL20.8bn(7% of gross loans) from TL22.2bn in 4Q, while total coverage stood at 7.6%

DOHOL/GWIND : announced that they will be buying 8 mn shares of GWIND at a limit of TL 5.06 till June, 30 which is equivalent to 5% of the GWING shares.

AYDEM: the new IPO will start trading today.

CANTE: the new IPO will start trading on Apr, 30th

Weekly Agenda:

April 29: CBT governor Kavcioglu will share inflation expectations today

April 29: GARAN NI estimate ATA: TL1,904mn Consensus: TL 1,876mn

April 29: TKFEN NI estimate ATA: TL 395mn Consensus: TL 348mn

April 29: EREGL NI estimate ATA: TL 2,347mn Consensus: TL 2,220mn

April 30: March trade balance (Consensus -US$ 4.7bn)