Buy - Sell

·        OPPOSITION MP REPORTEDLY FILED FOR CANCELLATION OF NEW AIRPORT TENDER > Opposition CHP MP reportedly filed for cancellation of new Istanbul airport tender with Council of State. MP cited problems with environmental assessment report and changes to tender procedures as reasons for filing. Comment: Given importance gov’t attaches to this project and amount of preparation behind the tender, we think cancellation is unlikely. In case the project is slowed down at some point because of an injunction or cancellation, it could be somewhat good news for TAVHL (BUY, TP TL15.81) and bad news for THYAO (BUY, TP TL9.69) depending on extent of delay.

 

·        BASEL-III TO COME INTO EFFECT JAN 1 2014> BRSA announced that BASEL-III will become applicable starting from Jan 1, 2014. One of the major changes => 100% of unrealized m-t-m gains to be considered in calculation of CAR instead of currently used 45%. Attached pls find our findings according to 1Q13 results, however, given the rise in i/r, the +VE impact is expected to be smaller vs attached. NET/NET> YKBNK will be most +VE’ly impacted followed by ISCTR.

 

·        BANKS REPORTEDLY REDUCING CREDIT CARD LIMITS > News in couple of dailies saying that some banks have cut credit card limits without informing holders. If true we think two main reasons behind such a move. Banks are trying to reduce the unused credit card limits to be able to control risk weighted assets in our opinion. We do not think that cutting the credit card limits to have any relation with NPL issue. Comment: News might have some slight -VE impact on banks’ share prices as cutting credit limits without informing the client may be carried to court.

 

·        AEFES (HOLD, TP TL28.90) ANNOUNCES JULY 12 ANALYST MEETING > Will host analyst meeting on July 12^th with Efes Beer Group President Mr. Alejandro Jimenez and Anadolu Efes CFO & IR Director Mr. Onur Çevikel. Anadolu Efes’ Beer Operations 1H2013 sales volumes and 2013 outlook will be discussed.

 

·        REAL ESTATE SECTOR > Gov’t reportedly working on new draft law which regulates pre-sales and deliveries in real estate sector. Accordingly, late delivery fines will be reduced, but other fines (not having project completion insurance, starting presales without construction permit etc.) will be hiked. Also, in case of a cancellation from buyer, the contractor will get up to 2% of sale value. This new draft law might make things harder for small developers. Overall slightly +VE for sector.