Buy - Sell

·         TREASURY AUCTION TODAY > Treasury will issue 14m zero coupon bonds, which should attract decent interest. Treasury plans to borrow TL 6.7bn from market in Feb vs TL 10.4bn redemption. The sale amount in this week’s auction exp c.TL1.4bn.

 

·         TSBK (BUY, TP TL2.67) > 4Q12 financials today. TEB-BNPP NI @ TL74m vs Cons @ TRY75m. We expect 4% q-q loan growth in FX-basket terms, a 21bp q-q improvement in NIM on back of support from CPI-linked bonds despite steady loan-borrowing spreads. We expect no asset quality problems but forecast higher general provisions. Expect fees and opex in line with trend in the previous three quarters. We estimate 11% q-q increase in NI, leading to marginal improvement in ROE to 18% from 17% in 3Q12. Conference call @ 18:00 Istanbul time.

 

·         TAVHL (BUY, TP TL14.60) > Only 15%-17% of land required for new Istanbul airport will need to be appropriated according to the State Airports Authority. In other news: 16 companies have reportedly obtained tender documents (@ TRY100k) including SAHOL, ALARK, Limak, KCHOL, Dogus Holding and  AIC Holding (parent of Atlasjet). Reportedly, there can be at most three companies in any of the consortia to bid at the tender. Comment > Low ratio of land appropriation requirement is relatively good news, as it reduces chances of construction delays. Number of interested parties relatively high and shows significant interest in project. Yet, given challenges, most might not follow up. If limit to number of consortium members is true, would be somewhat good news for TAVHL which plans to bid alone.

 

·         HALK GYO (REIT) > To IPO 28% stake (TL250m) @ TL1.35/share on 13-15 Feb 2013. Price implies 32.5% discount. Allocation 20% institutional; 80% domestic retail. Company will own 20% of the Istanbul Finance Centre upon its completion. No impact on HALKB, as this is an IPO via capital increase.