BIST 3rd Quarter Balance Sheet Period Featured Sectors and Companies

The balance sheet period for the third quarter of the year (3Q22) in Borsa Istanbul started on October 18 with Kalekim. On the banks' side, the period started with Akbank on Wednesday, October 26. BIST third quarter financial announcement deadlines are October 31 for unconsolidated companies, November 9 for consolidated companies and November 21 for consolidated banks.

In Turkey, CPI increased by 3.08% mom and 83.45% yoy in September. Inflationary environment in Turkey continues to persist. CBRT has returned to interest rate cut policy for the last three months. Having cut interest rates by a total of 200 bps in the last two months, the CBRT cut the policy rate from 12.00% to 10.50% last week by 150 bps, exceeding expectations of 100 bps. 2023 being an election year, the monetary expansion realized by the economy management in the last few months has increased the upward pressure on inflation. The increase in public works expenditures (social housing, asphalt, pavement, parks and gardens), increased incentives and subsidies, and the 350 basis point interest rate cut by the CBRT in the last three months increase upward pressures on inflation and USD-TL. The high inflationary environment in Turkey and the horizontal course of the exchange rate have led to increased interest in the stock market. While the tightening monetary policies implemented by global central banks accelerated the outflow from global stock markets, the BIST has experienced a 45.42% increase in value in dollar terms since the beginning of the year.

Prominent Sectors and Companies

Banking Airway, Energy Food Retail Experts state that banks will once again attract attention with the profits they will announce in the third quarter due to the improvement in TL loan deposit spreads and swap costs, the income contribution of CPFEX securities and the strong commission effect. Although the inflation adjustments made by the banks in their personnel salaries due to the high inflation in the recent period and the pension and salary promotions followed as a customer acquisition policy caused the operating expenses of the banks to increase in the last period, especially the improvement in the CPIEX and loan-deposit spreads stand out in this quarter. Among private banks, we expect GARAN and YKBNK to stand out, while on the public side, Halkbank HALKB stands out due to the base effect. The fact that the tourism season was very productive this summer, the most productive quarter of the aviation sector was the third quarter, the improvement in pandemic conditions and the achievement of 2019 in passenger traffic with the increase in the ceiling price in the country, THYAO, PGSUS and {{19574|TAVHL}) make the aviation sector stand out in this quarter. With energy prices reaching record highs all over the world after Russia's invasion of Ukraine, the positive effects of EMRA's maximum settlement price mechanism about 6 months ago, and the recent increase in demand for renewable energy products, the energy sector is expected to stand out with the profits they announced this quarter. ALARK and ODAŞ Elektrik Üretim Sanayi Ticaret A.Ş. (IS:ODAS) stand out in the sector, while Galata Wind Enerji Anonim Sirket (IS:GWIND) and Aydem Yenilenebilir Enerji AS (IS:AYDEM) stand out in renewable energy.

Weak Balance Sheets Expected

EREGL and KRDMD due to the negative impact of China's zero kovid policy on demand and the decline in steel prices With a nearly 50% decline in the Ethylene - Naphtha spread, Petkim Petrokimya Holding A.Ş. PETKM TTKOM and TCELL are expected to perform weakly this quarter as contract renewals lag well behind the inflationary period. Source: investing Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account! The investment information, comments and recommendations in this article do not constitute investment advice. Investment advisory services are provided individually, taking into account the risk and return preferences of individuals. The content contained herein is in no way directive and the recommendations are general in nature. These recommendations may not be suitable for your financial situation and risk and return preferences. Therefore, making an investment decision based solely on the information contained herein may not produce results in accordance with your expectations.