TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

MARKETS FALL AMID RENEWED MIDDLE EAST TENSION
o The BIST100 was unable to capitalize on its previous day's gains, starting the day in the red due to the bombing of the hospital, leading to concerns of an extreme retaliaiton, and getting redder, after US President Joe Biden assured Israel of having its back, and thus rather urging Israel to use retraint, said that the US had its back. What the tought question Biden said he would ask prior to his visit, was also a concern journalists had, but could not get the chance to ask. Finally, Biden perhaps struck the final nail on the coffin when he stated that the "other team" was responsible for the bombing of the hospital-declaring that it was a Hamas rocket that struct the hospital. However, Biden did warn Israel not to make the same mistakes that the US made post September 11, and Israel will allow aid into Gaza after the meeting between Biden and Netanyahu, pledging $100mn in support in humanitarian aid to Gaza and the West Bank.
o Today, MSCI Asia is down 1.3%, US and EU futures are also down by 0.2-0.8%. We expect a positive opening with reactionary buying followed by pressure on BIST. Note that despite the fatal bombing of the hospital, the restrain from Hamas or Hizbullah from waging a severe retaliation, may be the slight glimmer of hope that investors are looking for the war to end soon, and for the markets to try to normalize, but foremost for the area and those most affected on both sides to heal from their wounds.
o Accordingly, the BIST100 fell by 3.36 to 7842, a tad higher than its lowest intraday level observed at 7837, and on a low turnover of TRY 101.6bn. The Banks fell by 3.90%, while the Mining shares were the most sold, falling by over 5%, despite the rise in the Gold prices. We expect banks to record strong 3Q numbers followed by even stronger 4Q numbers. Private bank shares provide good entry points in our view.
o On the BIST30 front, there were no stocks that managed to close positively, but yearning to look at the bottle half-full, TOASO, SASA and TUPRS were the least sold, compared to their peers. On a wider perspective, only 11 stocks in the BIST100 managed to close in the green.
o As of yesterday's BIST closing, the TRY is trading a tad weaker against the USD at 28.02, and much weaker against the Euro at 29.62, while the DXY considerably calm at 106.61. Both the 2yr and 10yr Bond rates rose yesterday by 160bps and 40bps to 29.11% and 28.06%, respectively.
o On the commodity side, is trading lower at $90.16, after seeing the $90.52 levels, and whereas ounce GOLD has fallen slightly to $1949, gram GOLD is flat at TRY 1755.
o The annual inflation rate in the eurozone fell to 4.3% in September, from 5.2% in the previous month, and from 9.9% on an annual basis. The highest contribution to the annual inflation rate came from services, and followed by food, and alcohol and tobacco products.
o The US Fed Beige Book reveled yesterday that it sees US growth as stable, or even sligthly weaker, and firms see prices rising at a slower rate in coming quarters, but that businesses struggled to pass along cost pressures.
AGENDA
o On the local front, Net Weekly Non-Resident Stock/Bond Holdings will be released, and on the international side, the US Weekly Jobless Claims, Existing Home Sales, and Fed Chairman Jerome Powell's speech will be monitored.lp*0
CORPORATE
o ARENA: Disclosed that it has expanded the operations of its Paynet payment systems.
o ASTOR: Disclosed during the session that it has signed with Siemens for fast electical vehicle stations, and that it signed a €2.4mn deal in Spain.
o GLYHO: Disclosed that cruise ship count increased by 16% in September compared to 2022, and passenger count rose by 31% y/y for 2022-23. The Company also announced that it would sell 44.9mn shares to an Institutional client at TRY 7/share.
o MIATK: Disclosed that the company successfully completed its Smart Waste Management System project and conducted its inaugural sale, amounting to TRY 306K, to Gölbaşı Municipality.
o OTKAR: According to TRTHABER news portal, disclosed that it has signed an agreement to manufacture 230 4x4 and 6x6 armoured vehicles for Estonia worth EUR 200mn.
o SOKE: The company obtained USDA Organic certification in the United States, enabling it to commence the sale of organic flour as a result of its strategic investment in Rudi's Organic and Gluten Free Brands Inc.
o THYAO: Disclosed that it bought back 93k shares at TRY 217.93.
 
o YKSLN: A company named Rising Stahl GmbH, with an initial capital of 30,000 euros, has been established.
o BORLS: Shares will start trading today at the "Star" market at TRY 25.30.



 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.