HALISTER1: Turkish Banks Soar, Making Country’s Stock Index Best in World

Turkish Banks Soar, Making Country’s Stock Index Best in World

(Bloomberg) -- Borsa Istanbul Banks Index up 3.9% as of 12:33pm in Istanbul, most since Jan. 30; benchmark Borsa Istanbul 100 Index rises 1.8%.
  • Akbank +4.2%, Garanti +4.2%; Isbank +4.9%
    • Bank of America Merrill Lynch upgrades Akbank and Garanti bank to buy from neutral; Vakifbank to neutral from underperform
  • Borsa Istanbul 30 Index, gauge of Turkey’s biggest listed companies, rises 2% for biggest gain among 96 equity benchmarks tracked by Bloomberg
  • “Analysts are reviewing their expectations for 1Q earnings for banks,” Cagdas Dogan, analyst at BGC Partners in Istanbul, says by e-mail. “Add referendum bets for a possible Yes win and recommendation upgrades; obviously these factors are pushing banks higher” 
  • “While referendum is obviously a risk, in the short-term the market is more interested to see the referendum being out of the way and on the removal of uncertainty,” Ozgur Yasar Guyuldar, head of equity sales at Raiffeisen Centrobank AG in Vienna
    • “Market is currently longing for reduced uncertainty in Turkey which will, in the short term, improve the sentiment,” Guyuldar says. “Banks are the obvious destination for tactical longs.”
  • RELATED
    • Investors Just Want Turkey’s Referendum Done With: Scenarios
    • Turkey Pollster Gezici Sees ‘Yes’ Vote at 53.3% in Referendum
    • Turkey Pollsters: Too Many Undecideds to Forecast Referendum

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
AKBNK TI (Akbank TAS)
GARAN TI (Turkiye Garanti Bankasi AS)
ISCTR TI (Turkiye Is Bankasi)
VAKBN TI (Turkiye Vakiflar Bankasi TAO)

People
Cagdas Dogan (BGC Partners Inc)
Ozgur Guyuldar (Raiffeisen Bank International AG)

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