What matters on Wednesday, September 21

Turkey’s benchmark stock index ended yesterday at 3,277.50 points, increasing 2.44% from Monday’s close. Starting the day at 3,260.84 points, Borsa Istanbul’s BIST 100 index gained 77.96 points from the previous close. The index’s lowest value during the day was 3,260.67, while its daily high was 3,277.5.

The crisis on Borsa Istanbul stemmed from a high deficit of collaterals in speculative leveraged transactions which traders attempted to resolve with market mechanisms following the decline in stock prices. The Capital Markets Board of Turkey (SPK) held a meeting, where stockbrokers offered cash reconciliation and repurchase in banking stocks to stop the sharp price decrease. Although a concrete decision wasn’t taken at the meeting, the perception that the public sector has stepped in reflected positively on Borsa Istanbul. Banking stocks, which sharply declined, had a fluctuant course yesterday.

The decline in the investment appetite of industrialists, who have difficulties in accessing finance, is reflected in investment incentive certificates. The cancellation of investment incentive certificates, which were prepared in previous years, has reached a higher level this year. The number of canceled investment incentive certificates totaled 1,507 in January-July, while the rate of cancellations of investment incentive certificates increased to 23.4%, hitting a 5-year high. The average rate, which remained below 10%, rose to 18% in the pandemic in 2020. The value of the canceled certificates totaled TRY 14.57bn while these investments were estimated to employ 60,000 people.

The Environmental Impact Assessment (CED) application for the electric vehicle battery and cell production plant investment that will be made jointly by Koc Holding, Ford, and South Korean company SK On, has resulted positively. A land allocation agreement has also been signed for the facilities that will be set up in the Baskent Organized Industrial Zone (OIZ) with a TRY 32bn investment. The plant will produce 330 million units of lithium-ion battery batches annually and 45-gigawatt hours of accumulator production cells.

The Istanbul deal to resume Ukrainian grain exports has been one of the UN’s greatest achievements in recent years, Turkish President Recep Tayyip Erdogan said in his address at the 77th session of the UN General Assembly in New York. “As a result of our intense efforts with UN Secretary-General Antonio Guterres, we have ensured that Ukrainian grain reaches the world via the Black Sea,” Erdogan added. The President called out Greece for its “persecution” of migrants in the Aegean Sea and Eastern Mediterranean. “While we are struggling to prevent the deaths of more babies like Aylan, Greece is turning the Aegean into a graveyard of refugees with its unlawful and reckless pushbacks,” said Erdogan. “We expect Greece to shun its politics of provocations and heed our calls for cooperation,” he added.


The Agricultural Input Price Index (Agriculture-IPI) jumped 133.41% in July year-over-year, according to the Turkish Statistical Institute (TurkStat). Agriculture-IPI increased by 1.31% on a monthly basis.


>> Celebrating its 55th anniversary, the home appliances company Arzum will establish a company in the U.S. to upgrade its operations in the country, according to Murat Kolbasi, Chairman of the Board of Directors of Arzum.

>> Treasury and Finance Ministry borrowed TRY 1.38bn in two auctions held yesterday.


>> This is not ‘liraization’ but ‘dollarization’!

Our Eco Analysis Columnist Alaattin Aktas addresses what happens after the FX-protected TRY deposit account implementation ends.

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