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Türkiye’s potential removal from grey list spurs BIST100 index’s marginal gain

Türkiye's potential removal from grey list spurs BIST100 index's marginal gain
By Omer Faruk Bingol
May 31, 2024 11:18 AM

In Borsa Istanbul, the BIST100 index closed with a limited value increase of 0.02% on May 30, reaching 10,481 points.

After breaking the critical 10,400 resistance level on May 24 and hitting a peak of 11,088 last week, the index saw its lowest point in yesterday’s session 10,413.

Subsequently, with news flow indicating Türkiye’s potential removal from the Financial Action Task Force (FATF)’s grey list, the index reversed its direction, albeit slightly upward. The fact the index also rose above the 22-day average in yesterday’s transactions drew attention.

Compared to its latest closing, the index is trading with a monthly premium of 4.34% and an annual premium of 40.30%.

Most rising, falling stocks

Among the companies included in the BIST100 index in yesterday’s transactions, BIOEN, SDTTR, TCELL, ASELS, and DOAS have emerged as the most rising stocks, with gains ranging from 6.64% to 3.38%.

On the other hand, SOKM, GWIND, AHGAZ, ULKER, and AKSEN were recorded as the stocks with the most significant declines, ranging from 7.69% to 3.55%.

Regarding capital inflows, TCELL, ASELS, and EREGL stood out, while THYAO, TUPRS, and YKBNK were observed as the stocks with the highest capital outflows.

The evaluations from two foreign institutions regarding bank stocks were released this week.

In the assessment by HSBC:

  • For Akbank: 70.00 ₺ (Last Closing: 65.70 ₺)
  • For Garanti BBVA: 120.00 ₺ (Last Closing: 102.60 ₺)
  • For Is Bankasi: 17.30 ₺ (Last Closing: 15.88 ₺)
  • For Yapi Kredi: 37.00 ₺ (Last Closing: 34.22 ₺)

Target price forecasts were made. It is observed that the closing prices of the bank stocks are close to the target prices.

Goldman more optimistic

In the report published yesterday by Goldman Sachs:

  • For Akbank: ₺86.00
  • For Garanti BBVA: ₺111.00
  • For Is Bankasi: ₺20.00
  • For Yapi Kredi: ₺42.50

Target price forecasts were made. Goldman’s forecasts, except for Garanti Bank, were higher than those of HSBC Bank.

Both foreign institutions’ expectations include a forecast of value increase ranging between 10% to 30% over 12 months for bank stocks. However, the BIST Bank Index’s 72.00% increase since the beginning of the year is interpreted as indicating that expectations for bank stocks are largely priced in.

Attention to 10,400 in the index

While emphasizing the critical nature of the 10,400 support level in the market, it’s noted that if this support fails, the level of 10,300, signaling a $322 support, could come into play. Long-term expectations are highlighted as positive, particularly emphasizing the gradual inclusion of BIST30 stocks with high trading volumes, strong financials, positive outlooks, and foreign interest into portfolios.

Last Updated:  Jun 29, 2024 8:12 AM