Türkeifonds - Türkei 75 Plus

Market comment

On Friday, the ISE benchmark opened mixed and traded range-bound within 300 points range, until the NFP data drove the markets higher. The index surpassed the 61k mark intraday, and closed at 60,999, with 0.2% daily gain while the weekly performance of the ISE was 3%.

Politics

Polls on referendum still reflect a tie, with the undecided voters to determine the outcome

Thus, there still is no clear side according to the polls that referendum will be resulting.  In the case of a “no” decision, we believe the market would be caught by surprise and there would be some selling pressure.  The case of “yes” with a very small margin as in the poll showings would not be an outright victory for the AKP.  In fact, AKP’s “winning” the referendum with a small margin would reflect a significantly stronger opposition CHP and would mean that the upcoming general election in mid-2011 would stage a very tough competition between the AKP and the CHP.  Only in the case that the AKP raises more than 60% would be a clear victory, which does not seem to be appearing in the cards according to the polls.  

Economy

Finance Minister Simsek informed that the extra wage hike for the civil servants for 2011 which averages +13.7% would bring a burden of TL3.6bn to the budget

News in brief

Five banks lend a total of US$1bn to Limak& Cengiz-Kolin consortium for Uludag and Camlibel electricity distribution privatization

TEIAS (State Electricity Transmission Co.) announced a 15.1% YoY jump in monthly power consumption in August (production was up 15.4% YoY).

GM of Gubre Fabrikalari reiterated their intent to acquire a company in North Africa to have better access to raw material resources