Buy - Sell

·         TREASURY BOND AUCTION > 2-yr benchmark and 10-year fixed coupon auction today

 

·         INDUSTRIAL PRODUCTION (NOV) @ 10AM > TEB-BNPP +13% y/y, Cons +10% y/y on more working days in Nov and reversal of Oct’s seasonal adjustment.

 

·         TAX BREAKS ON CORPORATE REAL ESTATE SALES TO BE REMOVED > Reportedly, according to a new draft law, the gov’t plans to eliminate some tax breaks & exceptions on the sale of real estate investments, resulting in higher tax exp for companies. According to the current law, companies holding a real estate asset for over five years, are exempt up to 75% of corporate inc tax on the gain recognized. With the new draft law, that exemption will be eliminated completely and the co will have to pay 20% tax on the gain from the asset sale.

 

·         TAVHL (BUY; TP: TL 13.80) > Terminal pass traffic +31% y-y to 5.2m pass in Dec’12 (+33% y-y in Nov’12). No. of pass reached 70m for 2012FY, +33% y-y. Comment: Again strong growth in terminal pass traffic, as we expected in Dec. Both Dec & FY figure in line with our est. Like-for-like growth (w/o Medina & Izmir dom ops, which it took over @ beg of Jan & July 2012 resp) 15% y-y for Dec (16% y-y in Nov) & 18% for 2012FY => for 2013, we expect number of pass to grow 11% y-y.

 

·         TTRAK (HOLD, TP TL42.3) > Anadolu Group signed a distribution agreement with Italy’s Argo Tractors and India’s Sonalika Group (Solis) to sell tractors in Turkey. Might increase competition but we don’t expect a major change in sector dynamics or in TTRAK’s mkt share. Roughly 25 brands have been in the mrkt since 2000 but haven’t been successful in gaining significant market share. Argo tractors has a portfolio of products that will cater to orchards, special landscapes and large agricultural plots. Indian Solis tractors, with power range between 50HP and 90HP, will cater to value buyers.