Technology bellwethers in US posted worse than expected earnings which in turn brought weakness to global equities. Turkish equities are likely to join the crowd and may face an opening below the 2000 level. Today January inflation will be out, where the consensus estimate is 10.98 %. 2,015-2,035 are the daily resistance levels for BIST 100 Index and the support level lies at 1985.
According to Ministry of Trade, foreign trade deficit increased by 240.7% y/y to US$10.44bn in Jan’22. Proportion of imports covered by exports declined by 2,028bps y/y to 62.8% in Jan’22. Exports increased by 17.3% y/y to US$17.59bn while imports increased by 55.2% to US$28.03bn in Jan’22. Foreign trade deficit declined by 7.5% y/y to US$46.13bn in 2021.
*Treasury Minister Nebati will meet with investors in London on Monday and Tuesday next week.
*GARAN TI > Garanti reported bank only 4Q21 NI of TL3,975 (+9% q/q and 77% y/y), 3% higher than consensus estimate. Garanti’s pre-provision income for FY21 is up 46% y/y and bottom-line up 110%. Net interest income was up 12% q/q (+22% for Akbank) on the back of contracting core margins and lower CPI linker income and higher swap costs. Net credit provisioning (excluding currency depreciation) was down 46% in 2021, while bank set aside TL900mn free provision in 4Q, bringing the stock to TL7.5bn (9.5% of equity). The bank reported 19.1% ROAE (22.2% when adjusted for free provisions) down from 19.2% in 3Q21.
*SAHOL TI> bought back 685K shares at an average price of TL15.31 on 2 Feb 2022. Since 09 Nov 2021, the total number of shares bought back reached 19.9mn at an average price of TL14.41.
*ARCLK TI> bought back 600K shares at an average price of TL51.40 on 2 Feb 2022. Since 02 July 2021, the total number of shares bought back reached 43.9mn at an average price of TL36.36.
*AUTOS > LV sales declined by 13% y/y in January 2022... Turkish Light Vehicle (LV) sales fell by 13% y/y to 38.1K units in Jan 2022, 33% higher than our estimate of 28.7K units at the beginning of the month. On a segmental basis, P. Car sales declined by 18% y/y to 29.0K units whereas LCV sales increased by 9% y/y to 9.1K units in Jan 2022. Our estimate for 2022E LV sales is 710K, implying 4% y/y decline.
*MGROS TI > Migros opened 3 new stores and closed 4 stores in Jan 2022. Migros’s number of stores stands at 2,564 as of Jan 2022-end. (neutral)