Turkish equities were up another 4.4% last week, bringing year-to-date returns to 34%. Banks are up 23% m/m, while industrials are up 12%.
There has been only a few times when banks have outperformed industrials over the past 10 years and of course the sustainability of this outperformance is always questionable. Banks will report record profits in 1Q with exceptional contribution from CPI-Linkers and lower provisioning expenses.
1Q reporting season starts this week with Turk Traktor on the 21st and Arcelik on the 22nd. We expect the momentum to remain resilient and break the resistance at 2,500 in to earnings season.
Selcuk Ecza Deposu <SELEC TI> goes ex-dividend today, paying TL0.50/shr (3.82% div. yield)
Arcelik <ARCLK TI> bought back 105K shares at an average price of TL64.28 on 15 April 2022.
Since 02 July 2021, the total number of shares bought back reached 59.5mn at an average price of TL41.29.