Buy - Sell

·         TCELL (BUY; TP: TL 12.17)/ TTKOM (BUY; TP: TL7.46): Acc. to Daily Zaman, a parliament commission has suggested gradually reducing the SCT (25%) & eventually scrapping it. These taxes have been burden on mobile operators & removal would be +VE (especially for TCELL) => we doubt the commission report will influence political decision makers. Recall that the reduction in SCT has been suggested many times before by various govt authorities => no change in rates.

 

·         ALARK (NR) => Co’s subsidiary Alsim won a $633m contract for the Aktogay Copper plant project in Kazakhstan. Positive.

 

·         SKBNK (REDUCE, TP TL1.25) => Sold a TL197m NPL portfolio for TL21m (11 cents on the dollar) => 38% of total NPLs => will lower NPL ratio of 5.2% by 2ppt to 3.2% while providing TL17m support to bottom-line. However, will lower specific coverage ratio to 50% from 69% and TL61m provisions would need to be set aside in order to restore the coverage ratio.