What matters on Wednesday, January 12

The domestic and foreign demand was strong in the fourth quarter (Q4) in terms of economic activities. The foreign demand was high as the purchasing managers index (PMI) data was on the rise abroad and the links of the countries, which are geographically close to Turkey, weakened with China. Turkey benefits from the situation notably in terms of the manufacturing industry, including automotive and durable consumer goods. Companies, which export and have foreign exchange (FX) surplus, positively differentiated from others, and will probably have a positive financial statement in Q4, according to Soner Kuru, Assistant General Manager of Marketing at Marbas Menkul.

Kuru emphasized the intermediary firms on Borsa Istanbul as the average daily transaction volume of Borsa Istanbul’s equity market rose from TRY 18bn to TRY 37bn in Q4 as compared to Q3. He said the increasing transaction volume will affect intermediary fees. Inflation continues to be the main factor for pricing on Borsa Istanbul while the market is expected to protect investors in terms of the real rate of return. Kuru warned investors to be careful about the choice of sector and equity as well as portfolio distribution, which will be important in this period.

On the other hand, Treasury and Finance Minister Nureddin Nebati convened with the Turkish Industry and Business Association (TUSIAD) President and its executives. TUSIAD President Simone Kaslowski said they discussed the issues about taxes, green transformation, and inflation at the closed-door meeting. Stressing that the inflation has reached quite high levels, Kaslowski added: “We hope that serious steps will be taken for this issue.” TUSIAD also shared the problems in the finance sector and interest rates for loans with Nureddin Nebati. “The real sector has difficulties to find sources of finance. This partly stems from FX rate shocks. The Ministry is aware of the situation and works on a package,” Kaslowski noted. 

In the meantime, legal entities residing in the country were included in the communiqué on the principles regarding the support to be provided if FX deposit accounts, FX denominated participation funds, and gold accounts are converted into TRY time deposit and participation accounts. Two separate communiqués were published on the subject in yesterday’s issue of the Official Gazette.


No important data will be released today in the country.


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