What matters on Wednesday, November 23

The manufacturing industry has increased its stocks to prevent the effects of the surge in raw material prices caused by energy inputs and a sharp FX rate hike, as well as difficulties in the supply chain. Now, the industry is struggling with a lack of demand, according to daily NB Ekonomi. In addition to a domestic demand issue, export companies are starting to face weakening demand, order postponement, and canceled orders. As a result, companies have started to focus on melting down their stock in warehouses. Sector representatives said the stock bubble has emerged in many industries, from ready-to-wear to major appliances, from furniture to iron-steel. They also said that they will enter 2023 with stock that gradually increases in cost. 

The Central Bank, whose net reserves have fallen below negative USD 52bn excluding swap transactions, is continuing its efforts to raise reserves through different channels. Saudi Arabia and Turkey are discussing Riyadh placing USD 5bn deposit in the bank, a Saudi Ministry of Finance spokesperson told Reuters. “We are in final discussion to make a USD 5bn deposit with the Turkish Central Bank,” the spokesperson said. The Turkish central bank declined to comment on the issue. A Turkish official with knowledge of the matter said discussions are at the final stage with Saudi Arabia over a swap or deposit agreement.

Turkey’s benchmark stock index ended yesterday at an all-time high of 4,780.74 points. Borsa Istanbul’s BIST 100 Index gained 210.42 points or 4.60% from the previous close with a daily trading volume of TRY 125.2bn. The global equity markets have are on a fluctuant course due to the recession, inflation, and increasing COVID-19 cases in China. However, the BIST 100 Index has positively differentiated from them, according to analysts. They said 4,530-4,550 points will be the support level and 4,800 points will be the resistance level for the BIST 100 index, in technical terms.

On the foreign policy side, The Pentagon stated yesterday that it is monitoring the situation in northern Syria following a deadly bombing in Istanbul. “We continue to monitor what’s happening on the ground and from all aspects of this department. We continue to urge for de-escalation on all sides,” spokeswoman Sabrina Singh said at a press briefing. She said the Turkish strikes in Syria and Iraq were disrupting the goal of the “enduring defeat” of the Daesh/ISIS terror group. Her remarks came hours after the White House’s National Security Council Coordinator for Strategic Communications, John Kirby, said Turkey is facing a terror threat on its southern border and has the right to defend itself. “Turkey does continue to suffer a legitimate terrorist threat, particularly to their south. They certainly have every right to defend themselves and their citizens,” Kirby told reporters during a webinar. He said the US has concerns about cross-border operations, which he said would affect the fight against the Daesh/ISIS terror group carried out by the PKK/YPG. Early Sunday, Turkey e launched Operation Claw-Sword, a cross-border aerial campaign against the YPG/PKK terror group, which has hideouts across the Iraqi and Syrian borders. 


The Financial Services Confidence Index dropped by 9.6 points to 154.7 in November, compared to the previous month, according to the Central Bank.

The number of road motor vehicle registations declined by 0.1% to 102,403 in October, month-over-month, according to the Turkish Statistical Institute (TurkStat).


>> The employment index, including the manufacturing, construction, and trade-services sectors rose by 7.1% in the third quarter, compared to the same period of the previous year, according to TurkStat.

>> The Treasury and Finance Ministry borrowed TRY 10.6bn during the reissuance of a 5-year (1,757 days) maturity fixed coupon bond and a 10-year (3,542 days) maturity CPI (Consumer Price Index) indexed government bond.

>> Vakifbank secured a USD 560.3m syndication loan with the participation of 21 banks from 16 countries.


>> Slowdown in the manufacturing industry becomes more significant

Our Eco Analysis Columnist Alaattin Aktas addresses the September Industrial Production Index announced by TurkStat.

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