What matters on Wednesday, July 27

The new communique on the Special Consumption Tax (SCT), which was announced by the government after Republican People’s Party (CHP) leader Kemal Kilicdaroglu brought SCT reduction to the agenda, has paved the way for uncertainties and debates at the automotive market. While some consumers who expect an SCT reduction have suspended purchases, the second-hand market, in particular, may adversely be affected by uncertainties. Public expectations for a SCT reduction for automobiles may force a regulation, sources close to economy managers told daily DUNYA.

Turkey currently has 6 billion cubic meters of natural gas, according to Energy and Natural Resources Minister Fatih Donmez. Speaking to the broadcaster Haber Global TV, Donmez said they have taken measures against a possible supply shortage. He also added that contracts signed with Russia, Azerbaijan and Iran will be renewed. Touching on Turkey’s carbon exploration operations, Donmez stated that the Abdulhamid Han drillship will set off from the port city of Mersin to begin hydrocarbon exploration in the Mediterranean Sea. “We will send this ship off to its first mission from Mersin on August 9,” he added.

Turkey’s benchmark stock index Borsa Istanbul fell 0.45% to end at 2,537.12 points yesterday. Starting the day at 2,558.23 points, BIST 100 index lost 11.37 points from the previous close. The index’s lowest value was 2,535.32 points, while its daily high was 2,565.61 points – 40 stocks on the index rose, 59 fell, and one remained unchanged compared to the previous close. The ongoing recession risk in the world continues to be influential on pricing, according to analysts. They said 2,480 points will be the support level and 2,550 points will be the resistance level for the BIST 100 index, in technical terms.

The International Monetary Fund (IMF) upgraded Turkey’s economic growth forecast from 2.7% to 4.0% for 2022 and from 3.0% to 3.5% for 2023.

On the foreign policy side, the U.S. National Security Council spokesman John Kirby thanked President Recep Tayyip Erdogan and UN Secretary-General Antonio Guterres for their efforts in setting up a center to facilitate Ukraine grain exports to global markets. “We welcome and we appreciate the leadership of the UN secretary-general, as well as President Erdogan, in getting this Joint Coordination Center set up,” Kirby told reporters. “We know that was no easy feat, and they worked hard at it. Now, obviously, the proof is going to be in the pudding.” The Istanbul-based Joint Coordination Center (JCC) is set to officially open today.


No important data will be released in the country.


>> The Residential Property Price Index jumped 145.5% in May, compared to the same month last year, according to the Central Bank.

>> Turkey ranked 54th with visa-free entrance to 110 countries in the Passport Index, prepared quarterly by the UK-based investment migration consultancy company Henley&Partners.

>> Book-building by the software and technology development company OBASE will be organized on July 28-19 at an IPO (initial public offering) price of TRY 10.50.


>> Who increased the Treasury’s interest rate burden by TRY 1.4tr?

Our Eco Analysis Columnist Alaattin Aktas examines the main reasons why the Treasury’s domestic debt is increasing.

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