Ford Otosan Became the Leader of Borsa Istanbul
Ford Otosan became the leader of Borsa Istanbul. The company passed Koç Holding and took the leadership throne.
Ford Otosan was the winner of the new year rally in Borsa Istanbul. As a result of the rapid rally in Ford Otosan shares this week, the company was recorded as the company with the largest market value in Borsa Istanbul.
Ford Otosan, a joint venture between Ford Motors and Koç Holding, has increased by 25 percent since Monday. Leaving Koç Holding behind in the Borsa Istanbul 100 index, the company succeeded in taking the first place in the list.
Responding to Bloomberg’s questions, Ford Otosan showed strong 2020 performance, the investment incentive announcement providing some clarity in terms of investment expenditure, duration and content, dividend expectation, e-Transit production news, strong export expectation in 2021 as the basis of the rally. The company used the following statements in the statement:
“Currently, we are a company that offers both growth and dividend possibility in Turkey. This is causing a positive divergence.”
On the other hand, according to some analysts, Ford Otosan’s announcement was insufficient to explain this rally. ICBC Turkey Investment Research Manager Burak İşyar said the following regarding the issue:
“There are positive prospects and developments, but the recent rally indicates a bit of overpricing or an unannounced new development. Valuations have started to rise a little.”
The 14-day relative strength index of the company’s stock increased to about 84 and recorded its highest level since 2010. This level stands well above 70, which some analysts thought indicates that the rally was accelerating excessively and has the potential to pull back.
Of the 22 analysts evaluating Ford Otosan, 13 recommended “buy”, three recommended “sell” and six were “neutral”.
This article has contributions of Bloomberg HT.