What matters on Tuesday, August 30

Happy Victory Day!

Today, Turkey celebrates the 100th anniversary of Victory Day, a public holiday commemorating a decisive victory in the Battle of Dumlupinar, the last battle in the Greco-Turkish War, on 30 August 1922. Following the battle, Greek presence in Anatolia ended. Victory Day was first celebrated on August 30, 1923 and has been an official holiday since 1926. Markets will be closed due to the official holiday.

Before markets were closed, Turkey’s benchmark stock index ended yesterday at 3,164.96 points, up 0.60% or 18.86 points from last week’s close, hitting a new record high. The index’s lowest value during the day was 3,110.60, while its daily high was 3,174.02. The total market value of the BIST 100 was around TRY 2.5tr by market close, with a daily trading volume of TRY 63.4bn. The global equity markets are on a negative course following ‘hawkish’ messages by central bank officials, including Federal Reserve (Fed) Chair Jerome Powell, against a globally increasing risk of recession, according to analysts. They also stated that the busy data agenda will direct pricing in the BIST 100 index. Analysts said 3,050 points will be the support level and 3,200 points will be the resistance level for the BIST 100 index, in technical terms.

While the minimum wage was raised by 30% to TRY 5,500 in net terms in July, the monthly food expenditure required for a healthy, balanced, and sufficient nutrition of a family consisting of four people (hunger limit) amounted to TRY 6,889.76 in August, according to a survey conducted by the Confederation of Turkish Trade Unions (TURK-IS). In addition to food expenditures, the amount needed to secure the necessities of life, such as housing (electricity, water, heating, etc.), clothing, transportation, education, health, etc. (poverty line) totaled TRY 22,442. The monthly cost of living for a single employee rose to TRY 8,999.13.

The number of supermarkets incorporated by the Agricultural Credit Cooperatives of Turkey will be increased to 2,000-3,000, according to President Recep Tayyip Erdogan. Speaking at a mass opening ceremony in Kutahya province, Erdogan said the positive reflections of measures and policies which have been implemented since the beginning of 2022 will be better seen in people’s daily lives. Erdogan also reiterated that supermarkets incorporated by the Agricultural Credit Cooperatives of Turkey have started to sell products at a cheaper price.

On the foreign policy side, Foreign Minister Mevlut Cavusoglu said Turkey doesn’t participate in unilateral sanctions in principle. Speaking at the 17th Bled Strategy Forum in Slovenia, Cavusoglu added: “That’s why Turkey’s foreign trade with Russia continues. However, we won’t allow Russia to bypass sanctions”.


No data will be released due to the official holiday.


>> The net profit of the banking sector totaled TRY 38.7bn in July, according to the Banking Regulation and Supervision Agency (BDDK). Thus, the sector’s net profit has jumped by 505% since January.

>> The asset size of the banking sector amounted to TRY 12.3tr in July, according to BDDK. The sector’s asset size rose by TRY 3.08tr, or 33.5% in July, compared to the end of 2021.

>> Turkey’s foreign trade deficit soared 143.7% from USD 25.51bn to USD 62.17bn in January-July, compared to the same period of the previous year, according to the Turkish Statistical Institute (TurkStat). The country’s exports increased by 19.1% to USD 144.33bn and imports climbed by 40.7% to USD 206.5bn in the same period.

>> 30 companies have completed their IPO (initial public offering) on Borsa Istanbul in the first eight months of the year with an IPO size of TRY 12.2bn, according to daily DUNYA. 52 companies were offered to the public in 2021 with a total IPO size of TRY 21.7bn.


>> Relationship between Turkey’s exports to EU-28 and the growth of EU-28

There is a close relationship between the change in Turkey’s exports to the EU-28 and the growth of the EU-28. The possibility of a recession is high in Europe, which isn’t good for Turkey.

Have a nice day!

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