The companies’ financial statements are expected to be released from April 21-May 10 for the first quarter (Q1). The Q1 results are estimated to include sharp foreign exchange rate (FX) movements on an annual basis, as USD/TRY jumped by 76% from 8.32 to 14.64 between March 31, 2021, and March 31, 2022. The surge will be effective in the annual comparison of the financial statements while the FX rate, which rose by around 10% quarterly, will create a limited impact, according to Soner Kuru, Assistant General Manager of Marketing at Marbas Menkul Degerler A.S. Marbas Menkul Degerler A.S. expects an increase in profitability of companies operating in the food and retail sectors with the impact of inflation pricing. It also predicts a strong financial result from the companies in the iron-steel, petrochemical, automotive, consumer durables, and major appliances industries.
The export limit for particleboard and raw medium-density fiberboard (MDF), which are considered among the main inputs of the furniture sector has been increased, according to the Trade Ministry. As part of the new regulation, these products will fully be supplied by the manufacturing companies to the domestic market.
Turkey’s benchmark stock index Borsa Istanbul gained 0.36% to close at a new record high level of 2,519.24 points yesterday. The BIST 100 index also hit a fresh intraday all-time high of 2,533.33 points. Starting the day at 2,524.02 points, the index increased 8.93 points from Monday’s close of 2,510.31 points. Its total market value was more than TRY 2tr by market close, with a daily trading volume of over TRY 54bn. Analysts say the domestic market positively differs from the global markets where the risk appetite has a low course due to the hawkish directions of the Federal Reserve officials, the escalated conflict in the Russia-Ukraine war, and the increasing number of daily coronavirus cases in China.
DAILY AGENDA
The non-domestic producer price index (NPPI) jumped 105.82% in March year-over-year, according to the Turkish Statistical Institute (TurkStat). The ND-PPI rose by 7.29% on a monthly basis.
The Ministry of Treasury and Finance will release the central government’s domestic and external debt stock for March (5.30 pm).
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>> The negative trend in the balance of payments
Daily DUNYA columnist Ismet Ozkul analyses the adverse impact of developments in the current account deficit and balance of payments on the most critical areas of the economy, from growth to unemployment, from exchange rates to inflation.
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