Turkey’s benchmark stock index opened at 2,425.36 points on Wednesday, rising 7.06 points, or 0.29%, from the previous close. Borsa Istanbul’s BIST 100 index closed on Tuesday with sizeable losses, down 2.59% to 2,418.30 points, with a daily trading volume of TRY 48.1bn.
The stock exchange is experiencing a period in which foreign pressure is increasing and companies have also begun to release their financial statements. The expectation that the Federal Reserve will accelerate interest rate hikes paves the way for deep sales on the international stock exchange abroad. Although recent statements indicate several 50-basis point hikes by the Fed, the pressure may increase on all asset prices. “However, Turkey will feel a limited impact on a TRY basis as inflation continues to drive the upward inflow of nominal prices,” says Soner Kuru, Assistant General Manager of Marketing at Marbas Menkul Degerler A.S. As a result, Marbas Menkul Degerler is estimating the May-June period to be a consolidation and suppression period for the Borsa Istanbul stock exchange while upward movement is expected to strengthen in July-August. “We project that the BIST 100 Index will see above 3,000 points this year if there is no deterioration in basic factors or negative developments in international relations,” Kuru added.
The requirement to wear protective face masks indoors in Turkey has fully been lifted, except for in hospitals and on public transportation. “The indoor mask mandate will continue to stay in effect only in public transport and health institutions for a bit longer until the number of cases decreases below 1,000 per day,” President Recep Tayyip Erdogan said at a press conference after the Coronavirus Scientific Advisory Board meeting. President Erdogan highlighted that people over 65 and with chronic diseases and people who are in contact with at-risk groups are ‘recommended’ to continue wearing masks. Erdogan also added that the Coronavirus Scientific Advisory Board, which is affiliated with the Health Ministry, will no longer be holding regular meetings unless there is an emergency.
Treasury and Finance Minister Nureddin Nebati said Russian tourists won’t have spending difficulties due to bans on their access to VISA and Mastercard. “There are payment systems such as MIR and TROY. Although they can’t use TROY abroad, the use of MIR increases. They won’t experience any problems with the MIR payment system,” Nebati added. The Treasury and Finance Minister highlighted that the acceptance of MIR cards hovers around 15% among enterprises in Turkey and that banks are working to increase this figure. Nebati said he believes that Turkey will host 45 million tourists and generate USD 35bn in tourism revenue this year.
DAILY AGENDA
The number of road motor vehicle registrations surged by 47.2% to 97,974 in March, compared to the previous month, according to the Turkish Statistical Institute (TurkStat).
Industry and Technology Minister Mustava Varak will attend the groundbreaking ceremony for the Carbon Fiber Composites manufacturing plant built by composites firm DowAksa and the signing ceremony for the Yalova Specizalized Organized Industrial Zone and East Marmara Development Agency (2.00 pm).
Treasury and Finance Minister Nureddin Nebati will attend the general assembly meeting for the Istanbul Chamber of Industry (ISO) (5.00 pm).
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Turkey found two solutions to the aircraft issue presented by the Russia-Ukraine war. One of them is to allocate seats by Turkish Airlines to tour operators and the other is to change in the Civil Aviation regulation. These are solutions that make the best of a bad situation, but they don’t meet expectations. It’s important to see how Russia approaches these solutions.
