Morning Note /
Global

Turkey: Weakness should be perceived as a buying opportunity

  • Global markets are signalling another positive opening for Turkish equities yet TL keeps depreciating

  • Since the beginning of June TL depreciated 3.3% against USD and 14% since the beginning of May

  • We remain very positive for TAVHL technically which is also one of ATA Top picks

Batuhan Ozsahin
ATA Invest
8 June 2022
Published by

Global markets are signalling another positive opening for Turkish equities yet TL keeps depreciating. Since the beginning of June TL depreciated 3.3% against USD, and 14% since the beginning of May. The trend signals a further jump in inflation.

BIST is still the most attractive investment tool for TL savings. Despite daily profit-taking sales, BIST 100 closed almost unchanged yesterday thanks to the aviation companies, TUPRS and SISE.

We expect BIST 100 to open positively towards 2,660 and then 2,675. And weakness should be perceived as a buying opportunity. We remain very positive for TAVHL technically which is also one of ATA's Top picks.

Company news:

* MPARK TI> bought back 40K shares at an average price of TL36.64 on 7 June 2022. Since 25 May 2022, the total number of shares bought back reached 510K at an average price of TL35.72.

*THYAO TI PGSUS TI> The price cap for domestic flights in Turkey increased from 699 TL to 899 TL. <Positive, THYAO, PGSUS > The price cap applied on domestic flights, which was previously 699 TL, was increased to 899 TL. The number of passengers on domestic flights was at 45% of the total PAX of PGSUS. Domestic flights are 28% of total revenues. We consider these new price levels positive for PGSUS. In THYAO, domestic flight revenues are at 6% of the total revenue. Before the pandemic, domestic revenues made up 10% of total revenue. We consider these new price levels slightly positive for THYAO.

*BIMAS Tl> BİM announced a maximum buyback of 5 mn units and a maximum of TL450mn on December 6, 2021. Within the scope of the program, 3.687 mn shares were purchased at an average share price of TL71.27 until the date of the general assembly. Together with the shares obtained from the buyback programs initiated by the company in the past years, the shares of BIMAS it holds have reached 9.358mn and the ratio of these shares to the company's capital has been 1.5412%. The aforementioned buyback program ended on 7 June with the 2021 ordinary general assembly meeting.

*TAVHL TI> Highlights of TAV Airports May’22 – May’21 Traffic Results: Total number of passengers served in May 2022 at TAV-operated airports is 180% above May 2021 and 19% below May 2019. International passengers served in May 22 is 289% above May 2021 and 26% below May 2019. Massive recovery started in Medinah in May 2022. (-34% vs month of May 2019).

Weekly Agenda:

June 10: April Unemployment rate( March 11.5%)