Morning Note /
Turkey

Turkey: Weak USD may lead to risk appetite in global markets

  • HALKB financials which are announced late are in line with expectations

  • Profit taking sales started gradually

  • TUPRS and EREGL are resilient and may continue outperforming

ATA Invest
14 November 2022
Published byATA Invest

Weak USD may lead to a risk appetite in global markets. HALKB financials which are announced late are in line with expectations but in general weak compared to other banks. Capital adequacy ratio of the banks is 14,3% despite two rights issue done. Profit taking sales started gradually which is expected and 4,400 – 4,100 levels will be followed in case of further selling pressure. TUPRS and EREGL are resilient and may continue outperforming.

 Macro news:

Current account (C/A) deficit realised as US$2.97bn in Sep’22. (Bloomberg Cons: US$2.50bn) In Sep’22, there was a net outflow of US$3.4bn from portfolio investments (Aug’22: -US$0.8bn). 12M Trailing Current Account Deficit realised as US$39.2bn in Sep’22. 12M Trailing Current Account Deficit/GDP ratio realised as 4.7% in Sep’22. We expect Current Account Deficit (C/A) and CAD/GDP to be US$58bn and 7.3%, respectively in 2022

 Company news:

*SAHOL TI> bought back 500K shares at an average price of TL36.10 on 11 November 2022. Since 09 Nov 2021, the total number of shares bought back reached 71.9mn at an average price of TL18.65.

*MPARK TI> bought back 38K shares at an average price of TL72.01 on 11 November 2022. Since 25 May 2022, the total number of shares bought back reached 6.4mn at an average price of TL47.84.

*DOAS TI> goes ex-dividend today, paying TL4.09/shr (2.8% div. yield)

Weekly Agenda:

Nov,14: Sep Foreign Trade Indices

Nov, 15: CBRT Budget Balance

Nov, 16: October Home sales

Nov, 17: BRSA Weekly Banking sector data

Nov, 18: October CBRT Survey of participants