Newsletters
Shares of Turkish firms Anadolu Efes and Enka rose sharply during the Thursday session amid renewed hopes of a Russia-Ukraine cease-fire ahead of a potential meeting between U.S. President Donald Trump and Russian President Vladimir Putin.
The anticipated summit has raised investor hopes of reduced geopolitical tensions, particularly regarding the Turkish companies operating in Russia.
Anadolu Efes, Türkiye’s leading alcoholic beverage producer, saw its shares climb over 6% amid uncertainty surrounding its Russian operations, which were placed under temporary state control in December 2024.
The company had operated a 50-50 joint venture with Belgium-based AB InBev through their Netherlands-registered subsidiary, AB InBev Efes, which held 29% of Russia’s beer market and generated an estimated $60 billion in annual sales from 60 billion liters of production.
To mitigate rising risks, the partners agreed in 2024 to dissolve the venture, with Anadolu Efes set to acquire the Russian business and AB InBev the Ukrainian operations.
However, the deal stalled after President Vladimir Putin appointed a government trustee to oversee the venture.
In June, Russian regulators formally rejected Anadolu Efes’s bid to acquire AB InBev’s stake, blocking the transfer.
Despite Türkiye’s “friendly” status with Moscow, the company has been unable to reclaim control.
Shares of its parent, Anadolu Group Holding, also rose nearly 6%, hitting their highest level since March 20.
Construction and engineering giant ENKA, which holds a substantial portfolio of commercial and infrastructure projects in Russia, saw its shares climb 5.05%—the highest since mid-May.
The company has executed more than $11 billion worth of projects in the country over the past three decades, including five oil, gas, and petrochemical projects valued at $1.4 billion; six power plant projects worth $1.6 billion; and 170 building projects totaling $8 billion.
Other Turkish firms with significant exposure to the Russian market also gained. Koc Holding, Türkiye’s largest conglomerate, and its home appliance subsidiary Arcelik each rose more than 1.5%, bolstered by the general improvement in market sentiment toward geopolitical risk.
Sisecam, a Türkiye-based glass and chemicals manufacturer with total investments of $1.1 billion in the country, also rose over 1%.
In a broader outlook, the benchmark BIST 100 index rose by over 1%, reaching a 2.5% weekly gain as expectations for a continued rate cut by the central bank have grown following better-than-expected inflation figures for July.
11,018.92 as of 1330 GMT with a ₺94.39 ($2.32 billion) trading volume, surpassing the mark for the first time after 1 year. The liquid bank index has powered up the rally as it also rose 1.9%.
In July, Türkiye's annual inflation dropped to 33.52%, while consumer prices increased by 2.06%, the official figures showed.
The Turkish central bank resumed interest rate cuts in July with a 300-basis-point reduction, following a pause in April when it raised the policy rate by 350 basis points. The rate currently stands at 43%.
The next monetary policy meeting is scheduled for Sept. 11.
1 min read
4 min read
