Buy - Sell

·         BANKING – Deposit maturity measures > Deputy PM Babacan says studies re new potential measures to extend avg deposit maturity have been completed and will be announced soon => expected to be a combined effort by regulators and involve both withholding taxes and required reserves. Comment: We should potentially expect higher withholding taxes & required reserve ratios for shorter-term deposits and vice versa. While one could expect some lengthening in avg deposit maturity following enactment of such measures, we doubt the changes would have a meaningful impact.

 

·         HALKB (BUY, TP: TL18.72): HALKB’s weighting will increase in ISE-100, ISE-30 & MSCI indices post-SPO today. Weights will be as follows: ISE-30 => 4.9% to 9.1%; ISE-100 =>4.0% to 7.5% & acc. to our calculations MSCI-TR =>4.62% to 8.61%.

 

·         ARCLK (Reduce, TP: TRY10.36): Oct’12 domestic white good sector sales announced => -3.4% y-y to 569,212 units due to EID Holidays (following recovery in demand in Sep (+6.0% y-y)) => Ytd -0.5%. Export vols flat y-y & 10M12 +12.6% y-y. Sep-12 exports strong (+23% y-y) => driven by early shipments in advance of shut-downs of Oct due to EID. Sep-Oct12 exports +10.6%. We believe Oct data does not highlight major trends shifts. Neutral for ARCLK.

 

·         AKSEN (HOLD; TP TL4.11) > received an investment incentive of TL440m for its lignite coal fired power plant (MW 275) investment in Goynuk, Bolu. The investment will receive a total support of TL88m (20% of invested amount) in taxes from the govt. Will be finalized by 2015 and the power plant will become operational by then. However, the incentive can be utilized in the years even after that if need be. Lignite coal will account for 13% of total electricity generation of the Company, as from 2016 onwards.