5 Intermediary Institution Evaluated the Strategy Reports

5 intermediary institution evaluated the strategy reports. Positive pricing for 2021 stood out in the strategy reports. While Borsa İstanbul opened 2021 with record levels, the strategy reports published by the intermediary institutions signaled that the new year will be positive. Believing that investors' orientation to the stock market will continue, intermediary institutions predicted vertical movements in stock market indices and stocks.   BGC Thinks Turkish Companies Will Grow BGC estimates a 51 percent increase in Turkish companies' profits after three years of contraction in real terms. The profit increase expectation of the institution was 76 percent for companies outside the financial sector, and 20 percent for banks. Except for the aviation sector, the institution anticipates a 36 percent increase in the profit of non-financial companies and a 30 percent increase overall. In addition, BGC predicts the 12-month target level of 1.860 in the BIST 100 Index. This means an increase of 21 percent. Statements in the report of the institution are as follows: “We calculate that Turkish stocks are traded at a multiplier of 11.4 in 2020, and 7.5 with forecasts for 2021 profits. Based on the 2021 price/earnings multiplier, Turkish stocks are now traded almost without discount, compared to the 5-year historical average, but are still trading at 48 percent discount compared to the emerging markets median.” In addition to these, BGC also addresses the risks of 2021, drawing attention to inflation that may exceed expectations, tension with the USA and the EU, a sharp increase in global commodity prices, concerns about the coronavirus epidemic and early elections.   Yapı Kredi Yatırım is Hopeful for Turkish Shares Yapı Kredi Yatırım stated that it maintains its positive view in Turkish stocks for 2021. The target level of the institution in the BIST 100 index stands 24 percent higher than the current levels. On the other hand, the institution included Akbank, Alarko, Aselsan, Bim, Coca Cola İçecek, Erdemir, Garanti BBVA, Koza Gold and Turkcell in its model portfolio. Otokar and Tofaş were also removed from the model portfolio, following a return of 72 percent and 18 percent, respectively.   Deniz Yatırım: BIST 100 Will Be Among the Favorite Investment Tools Stating that it will continue to consider the BIST 100 index as one of the favorite investment instruments in the 12-month maturity, Deniz Yatırım drew attention to the possibility of correction in the first quarter along with global pricing due to the high valuations reached on a local basis and the record levels observed on a global basis. The institution thinks that the risks will be downward in the short term and upward in the medium-long term. The following statement was included in the strategy report of the institution: “In the period when the number of foreign investors decreased, the increase in the domestic investor front and the high interest in public offerings paved the way for the banking index to lag behind in terms of performance. We increase our optimism for banks in 2021. We expect the decrease in the country risk premium to continue. We expect an increase in foreign investor share.”   Vakıf Yatırım expects New Records from BIST 100 Vakıf Yatırım predicts that the BIST 100 index for 2021 will reach new record levels on TL basis by monitoring the vaccination and drug studies related to the coronavirus outbreak. The market-friendly steps to changing economic management in Turkey, foreign investors' growing interest in Turkish stocks with the start to the Society's empowerment, BIST 100 index to host still high return potential compared to similar countries market and IPO transactions, were the mainstay of the organization's prediction.   Yatırım Finansman: BIST 100 Target Increased to 1,750 Points Yatırım Finansman raised its target for the BIST 100 index from 1.510 points to 1.750 points. According to the institution's analysis, global risk appetite, favorable liquidity conditions and low cost of money created the most optimistic economic scenarios of the stock markets rapidly pricing. The institution stating that the thigt monetary and fiscal policies may pressure the corporate profitability and financial costs, said that these policies may determine the direction of the market by lowering the inflation and cutting the interest rate by the second half of the year in order to establish trust in Turkish Lira. The institution included the following statements in its analysis: “At the current valuation level, we recommend that investors focus on companies that still have attractive valuations. The 2021T F/K level is 8.5x (7.5x with consensus estimates) and the BIST discount has approached historical averages according to the MSCI GOU index.”       Source: Bloomberg HT