The policies which are set using the logic of competitive foreign exchange (FX) rates, high export volume, and current account surplus but don’t sufficiently overlap with today’s economic situation and these practices aren’t producing desired results in terms of development, according to Orhan Turan, the newly elected President of the Turkish Industry and Business Association (TUSIAD). Speaking at his first TUSIAD High Advisory Council (YIK) meeting, Turan said growth alone isn’t enough and that Turkey grows by impoverishing the populace. He also pointed out that the era of competitive advantage in exports through cheap TRY and the labor force has been replaced by the creation of high value-add with highly qualified labor force and technology. Meanwhile, Tuncay Ozilhan, YIK President of TUSIAD, pointed out at the meeting that previously implemented policies have raised inflation, deteriorated income distribution, and increased uncertainties. Ozilhan also stated that they expect the government and opposition to elucidate their perspectives on these issues.
President and AK Party Chairman Recep Tayyip Erdogan responded the messages made at the meeting. Speaking at AK Party’s Parliamentary Group meeting, President Erdogan said TUSIAD should never ‘knock on the door’ of the government if it continues with these critiques.
Turkey’s benchmark stock index was up by 0.88%, ending yesterday at 2,531.11 points. Borsa Istanbul’s BIST 100 Index gained 22.19 points from its previous close of 2,508.91 points. Daily trading volume amounted to TRY 35.2bn. The decrease will be limited for the BIST 100 index as long as the support level of 2,460.50 points, which is also the daily average, isn’t broken, according to Murat Barisik, Research Director of Ata Yatirim. Barisik said 2,600 points will be the resistance level in the index when it increases. Under the current conditions, Ata Yatirim believes that the current levels in the BIST 100 index are suitable for acquisitions for medium and long-term investors as long as they are selective in the short term. Because decisions by central banks, geopolitical risks, and FX rate developments may increase volatility in the market. 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.
President Recep Tayyip Erdogan reiterated the steps required to address Ankara’s legitimate concerns over the NATO bids of Finland and Sweden over the phone with NATO Secretary-General Jens Stoltenberg, according to a statement from the Communications Directorate. Erdogan told Stoltenberg that no progress can be achieved without seeing concrete steps by both Finland and Sweden that would meet Turkey’s expectations. The steps might include written commitments to a paradigm shift in fighting terrorism and defense industry cooperation, the statement read. Meanwhile, Stoltenberg tweeted that he held a constructive conversation with Erdogan ahead of the NATO summit in Madrid that will be held on June 29-30.
DAILY AGENDA
The private sector’s outstanding loans received abroad dropped by USD 5.3bn to USD 163.7bn in April, compared to the end of 2021, according to the Central Bank.
The Parliament’s State-owned Enterprises Commission will discuss accounts of Halkbank and its subsidiaries (11.00 a.m.).
The Banking Regulation and Supervision Agency (BDDK) and the Central Bank will release weekly monetary and banking statistics (2.30 p.m.). The Central Bank will release the Residential Property Price Index for April (2.30 p.m.).
