Turkish equities continued their upward trend with more broad-based buying yesterday. There are only 2 Lira asset classes that have at least matched the year-to-date inflation: 1) FX protected deposit scheme 2) BIST-100.
The broader stock index has outperformed both the industrials index and the banking index. We saw the increased interest in dividend-paying stocks yesterday with Erdemir increasing 6% after paying a 12% yield. We expect the market to test the 2200 level today and the focus will turn to 1Q results which are due after April 20.
President Erdogan will meet US President Biden in an extraordinary NATO meeting, which could bring some positive mood to the Turkey-US relations. There has been an enormous amount of effort to mend and improve our diplomatic relations with all countries that we had some kind of trouble with i.e. Israel, UAE, Egypt, Netherlands, Greece.
*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.
*Borsa İstanbul announced the changes in BIST indexes which will be effective on 1st of April, 2022.HEKTS will be included and DOHOL will be excluded from BIST-30 Index. EGGN, ENKAI, ISDMR will be included and BRYAT, GLYHO, SKBNK will be excluded from BIST50 Index. ARASE, GSDHO, GWIND, JANTS, KONTR, KUTPO, KZBGY, NUGYO, SNGYO, TRILC will be included ADESE, CEMAS, GESAN, IZMDC, KERVT, KRVGD, RTLAB, SARKY, VERUS, YATAS will be excluded from BIST100 Index.
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