What matters on Thursday, August 11

The domestic market is rallying. Turkish companies are announcing their financial statements for the second quarter. Overall, projections and profits have been in line with or above expectations. These results and projections have encouraged a positive atmosphere on Borsa Istanbul. Borsa Istanbul’s BIST 100 index will exceed 2,800 points and the climb will continue towards 2,840-2,850 points in the short-term, according to Murat Barisik, Research Director at Ata Yatirim. Ata Yatirim believes the possible outflows could be a purchase opportunity if perceived as profit sales as long as the BIST 100 index doesn’t fall below 2,765 points during profit sales. “We don’t expect a sharp decline as long as the balance sheet season continues,” Barisik said. Ata Yatirim suggests adding companies with solid fundamentals, stories, and exports to your investment portfolio. Barisik named TAV Airport, Birlesik Magazalar AS (BIM), Arcelik, Erdemir, Migros, Turk Telekom, and Sisecam as examples.

In line with Ata Yatirim’s expectations, Turkey’s benchmark stock index, Borsa Istanbul, jumped 1.59% yesterday to close at a new all-time high of 2,829.58 points. Starting the day at 2,778.92 points, the BIST 100 index gained 44.42 points from the previous close of 2,785.16 points. During midweek trading, the BIST 100 hovered between 2,664.83 and 2,684.46 points, as 81 stocks rose, 18 fell and one was flat compared to the previous close. Finishing the day with a market value of around TRY 2.3tr, the benchmark index posted a daily trading volume of TRY 48.7bn. Analysts said 2,600 points will be the support level and 2,720 points will be the resistance level for the BIST 100 index, in technical terms.

The Price Stability Committee convened under the presidency of Treasury and Finance Minister Nureddin Nebati. The Committee examined the factors affecting inflation and discussed strategic products strengthening the supply security as well as measures for the property market. The Committee decided to ensure the supply-demand balance for the main inputs of agricultural products in the coming period, according to a statement from the Treasury and Finance Ministry. It will also work for measures against the steps deteriorating the price mechanism in the property market. “As part of the Turkey Economy Model, steps will be taken to support and develop Organized Industrial Zones to raise production, exports, and employment and accelerate investments to reduce import dependency,” the statement read.

The business world’s difficulties in accessing finance were discussed at a meeting hosted by the Union of Chambers and Commodity Exchanges of Turkey (TOBB). Chairman of the Banks Association of Turkey (TBB) and CEO of Ziraat Bank, Alpaslan Cakar, who emphasized the annual increase in loan volume, said banks are allowing the manufacturing industry to use more loans. Stressing that the share of TRY resources stands at 43% Cakar added: “Around 60% of loans are used in TRY. There is a contradiction, as loans are demanded in TRY while TRY deposits are low.” TOBB President Rifat Hisarciklioglu, meanwhile stated that working capital loans have become critical for SMEs to continue their operations, in particular


The current account deficit (CAD) jumped USD 2.26bn to USD 3.45bn in June, year-over-year, according to the Central Bank. The 12-month rolling CAD reached USD 32.6bn, hitting a 15-month high.

The overall export unit value index increased by 12.0% and the overall export volume index was up by 6.0% in June, compared to the same month last year, according to the Turkish Statistical Institute (TurkStat). The overall import unit value index jumped 34.9% while the overall import volume index surged by 3.6% in the same period.


>> President Recep Tayyip Erdogan welcomed his Slovenian counterpart, Borut Pahor, with an official ceremony at the presidential complex in Ankara. The leaders expressed their satisfaction with the development of bilateral cooperation in almost every field, especially in economy, trade, industry, science, technology, and transportation. Erdogan said Ankara and Ljubljana have the potential to increase cooperation in the areas of economy and trade. “As NATO allies, Turkey and Slovenia have common steps to take, especially in the area of defense.” Turkey and Slovenia signed a cooperation deal in the area of science and technology.

>> Foreign investors’ net equity outflow from Borsa Istanbul totaled USD 247.6m in July, according to the institution. Their total outflow amounted to USD 3.11bn in the first seven months of the year.

>> The turnover of Sabanci Holding subsidiary Teknosa rose by 110% to TRY 6.24bn in the first half (H1) of the year, compared to the same period last year. The company’s net profit increased to TRY 191.8m in H1.

>> The asset size of Albaraka Turk climbed by 21% to TRY 131.7bn in H1. The bank achieved a cash loan portfolio of TRY 64.8bn in the same period.

>> The asset size of Ziraat Katilim increased by 54% to TRY 151.6bn in the second quarter, compared to the end of 2021. Its collected funds jumped 62% to TRY 126.5bn in the same period.


>> Isolation is now an issue of survival

Our Foreign Policy Columnist Zeynep Gurcanli analyses Turkey’s foreign policy steps in the light of recent developments.

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