Morning Note /
Turkey

Turkey: We leave one of most historic weeks in Turkish financials markets behind

  • Stocks had been moving hand in hand with the Lira depreciation

  • All the FX linked index heavy weights fell, as some foreign investors wanted to cash in from the Lira appreciation

  • We will go through a period of rebound efforts and digestion of the latest price actions

ATA Invest
24 December 2021
Published byATA Invest

We are leaving one of the most historic weeks in Turkish financials markets behind, as Lira strengthened from 18.4 to as high as 10.25 against USD, whereas the high flying Turkish stock market fell from 2406 to 1726, all within the past 5 trading days. Stocks had been moving hand in hand with the Lira depreciation, hence the fall has also been dramatic, as all the FX linked index heavy weights fell, as some foreign investors wanted to cash in from the Lira appreciation. We will go through a period of rebound efforts and digestion of the latest price actions and analysts will be hard at work trying to make meaningful estimates for 2022. As we are at year-end, deposit rates are at sky high 20% with Lira shortage and balance sheet dress up. The first half of 2021 might be good for a “ stable TRY” theme, if de-dollarization scheme actually works

Macro news:

CBT sold USD 504 mn in De 3 intervention

Company news:

*ARCLK TI> bought back 355K shares at an average price of TL47.46 on 23 Dec 2021. Since 02 July 2021, the total number of shares bought back reached 36.4mn at an average price of TL33.33.

*BIMAS TI> bought back 300K shares at an average price of TL63.52 on 23 Dec 2021. Since 6 Dec 2021, the total number of shares bought back reached 2.5mn at an average price of TL71.16.

 *SISE TI> bought back 8.05mn shares at an average price of TL12.69 on 23 December 2021. Since February, 26 2021, the total number of shares bought back reached 39.2mn at an average price of TL8.90.