TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

• The BIST suffered unaccustomed sharp sell-offs yesterday, falling by 3.46% to 4827 with a turnover of 111.5bn when all was said and done, dipping at 4773, triggered by Russia President Putin’s warnings of a possible global nuclear warfare, and coupled with ECB and ex-Fed President Bernanke’s call for continued aggressive rate hikes, as well as heightened concerns for a possible recession. The selloff steepened due to margin calls on leveraged accounts.
• The Banks fell by 3.30%, whereas the Mining stocks were the worst hit, as expected due to a possible return to a 75bps rate hike at the next FOMC meeting, though we do not see this probability yet priced in, and only the Aviation stocks managed to escape the sell-offs with the least damage, losing just near ¾’s percent. The grocery retail stores also dropped due to the antitrust probe, and their verbal testimony yesterday, as well as companies with over 200 stores required to relinquish their products and prices to the Ministry of Trade.
• ASELS and TAVHL were the only two stocks that managed to close the BIST30 in the green, both rising by less than 1% mind you, whereas SASA, BIMAS and VESTL were the most sold.
• Today, we expect the BIST to open with reactionary inflows.
• As of yesterday’s close, the TRY is trading flat at 18.64 against the USD, and slightly stronger against the Euro at 19.58. The 2yr and 10yr bond yields have fallen by 37bps and 6 bps respectively to 10.46% and 10.75%, respectively. The CDS rate continued their rise by another 3pts to 536 compared to the previous day.
• As for the commodities, Brent is trading lower just under the USD 78 level, as yesterday’s increase in the US oil stockpiles showed an increase, worrisome in that it means there is limited economic activity going on, and both ounce and gram GOLD prices are trading flat at USD 1785 and TRY 1069, respectively.
• European Central Bank Governing Council member Peter Kazimir signalled support for a third straight 75 basis-point interest-rate increase next week.
• Ex-Fed President Bernanke stated yesterday that the Fed should not waver in their pursuit of 2% inflation but talk less about it.
• According to Reuters, Saudi Arabia will make a USD 5bn Swap payment.
NEWS FLOW:
• SUNTK: Disclosed yesterday that it signed a preliminary protocol with Myth Artificial Intelligence and Textile Inc. which is a technology company that enables pattern design using artificial intelligence. The determined investment amount is 350.000 TL. We think that this is important development since the company tries to sell more than 1500 designs each month to apparel giants. We believe this might pave the way for more creative and faster designs thanks to A.I.
• ENKAI: Disclosed that it within the scope of its share buyback program, it has sold 1.96mn shares at TRY 27.30.
AGENDA:
• On the local front, the weekly Foreign Net Stok/Bond Holdings will be released, whereas on the international front, the US Jobless claims, as well as CBRT Governor Kavcioglu’s speech today, and ECB President Christine “Laggard” Lagarde will be speaking.
 
 TFG Istanbul Menkul Değerler A.Ş.
  www.tfgistanbul.com/arastirma-raporlar
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                  Yasal Uyarı
 
 Burada yer alan yatırım bilgi, yorum ve tavsiyeler yatırım danışmanlığı kapsamında değildir.Yatırım danışmanlığı hizmeti ; aracı kurumlar, portföy yönetim şirketleri, mevduat kabul etmeyen bankalar ile müşteri arasında imzalanacak yatırım danışmanlığı sözleşmesi çerçevesinde sunulmaktadır.Burada yer alan yorum ve tavsiyeler, yorum ve tavsiyede bulunanların kişisel görüşlerine dayanmaktadır.Bu görüşler mali durumunuz ile risk ve getiri tercihlerinize uygun olmayabılır.Bu nedenle, sadece burada yer alan bilgilere dayanılarak yatırım kararı verilmesi beklentilerinize uygun sonuçlar doğurmayabilir.