Morning Note /
Turkey

Turkish equities are continuing to break new records

  • Industrials are outperforming banks so this is bringing the question of whether it is time to punt for banks

  • With the level of TL depreciation we had in the past 3 months and inflation shooting over 30% in January (our estimate)

  • ATA TOP Pick SISE TP revised up to TL 24.4 signaling 66% upside potential

ATA Invest
9 December 2021
Published byATA Invest

Turkish equities are continuing to break new records while USD valuation remains flat with Lira weakness. Industrials are outperforming banks so this is bringing the question whether it is time to punt for banks.

With the level of TL depreciation we had in the past 3 months and inflation shooting over 30% in January (our estimate), the blockbuster 4Q profitability could provide a short-term opportunity.

Company news:

SISE: ATA TOP Pick SISE TP revised up to TL 24.4 signaling 66% upside potential.

VESTL:Vestl shareholder Birol Mutlu 6.663 .000 shares. His stake declined to %3.54 from %5.53

TKFEN: acquired US$400mn worth of contracting project from Qatar (Positive) Tekfen announced that the company received a letter of award from the Chiyoda Technip Joint Venture (CTJV) , for General Works for Offsites 2 of the North Field East Onshore Project EPC-1 Package in Qatar. According to the company’s announcement, the project amount, which is expected to be above US$400mn, will be announced with the signature of the contract by 10 Feb’22. The total duration of the project is 53 month. Please note that this project constitutes 27% of its existing backlog (US$1.46bn) as of 3Q21 end. We consider that the contribution of the project will be positive for its contracting segment.

BIMAS: bought back 130K shares at an average price of TL76.85 on 08 Dec 2021. Since 6 Dec 2021, the total number of shares bought back reached 185K at an average price of TL77.04.

Weekly Agenda:

Dec 10: CBRT December Expectations Survey

Dec 10: October Unemployment Rate (September 11.5%)

Dec 13: October Current Account Balance (Consensus USD1.65bn)

Dec 13: October Industrial production