Morning Note /
Global

Turkish equities continued their positive trend

  • Commodity linked names continue to fare better, while banks are continuing to struggle despite a great 1Q

  • Erdemir & Tofas are paying out dividends today (12.17% & 7.96% yields respectively)

  • BIST-100 is up 17% year-to-date as there is no alternative for Lira investments

Batuhan Ozsahin
ATA Invest
22 March 2022
Published by

Turkish equities continued their positive trend despite continued selling by foreign investors. Commodity-linked names continue to fare better, while banks are continuing to struggle despite a great 1Q, as the dynamics playing on the current account(record energy prices are putting pressure on trade deficit) and the potential liability created by the FX protected deposits are creating concerns on Lira’s potential stability later in the year. Erdemir & Tofas are paying out dividends today (12.17% & 7.96% yields respectively). Erdemir & Kardemir will post higher profits in 2022( consensus revisions likely to come after 1Q results), as steel prices are at record levels after Russia’s invasion of Ukraine. BIST-100 is up 17% year-to-date as there is no alternative for Lira investments.

Company news:

*TOASO TI> goes ex-dividend today, paying TL6.40/shr (7.96% div. yield) The reference price will be TL 74,05

*ISDMR TI> goes ex-dividend today, paying TL3.00/shr (10.27% div. yield) The reference price will be TL 26,20

*EREGL TI> goes ex-dividend today, paying TL4.45/shr (12.27% div. yield) The reference price will be TL 31,83

*ASELS TI> acquired US$33mn project from an international client regarding the supply of spare parts, test equipment, training and support services for defense systems. (slightly positive) The project is scheduled to be delivered in 18 months. The acquired project accounts for 0.4% of US$8.5bn backlog (as of 4Q21-end). We consider that the contribution of the additional project will be slightly positive.

Weekly Agenda:

Mar 23: 2021 unemployment rate

Mar 23: March consumer confidence index

Mar 24: FROTO TL 13/ share cash dividend payment

Mar 24: KORDS: TL 0.82/share cash dividend payment

Mar 25: March Capacity Utilization rate