Page 56 - TURKRptFeb22

7.2 Stock market
7.2.1 Equity market dynamics
7.2.2 Dividend dynamics
7.2.3 ECM news
For investors who are not short-term professional 'hit-and-run' types, there is little attraction in attempting steady investment on the Borsa Istanbul. The real rally will begin when the market is convinced that Erdogan will hand over the government. No need to rush. The USD-denominated BIST-100 index remains below the 200-level. It tested the 500-level twice.
Turkey’s banking regulator BDDK has reportedly advised commercial lenders not to distribute dividends from profits in 2021. Lenders were permitted to pay up to 10% of their net income in 2020. They could not distribute dividends from their profits in 2018 and 2019.
Russian billionaire Mikhail Fridman’s investment vehicle LetterOne demanded Turkcell (TCELL) replace four of its directors and limit their terms, but the demands have not met with cooperation from controlling shareholder Turkey Wealth Fund (TWF/TVF).
Turkcell has underperformed since TWF agreed to buy a 26% stake in October 2020. The company’s shares are up 34% in that period, lagging a 68% increase for BIST-100.
Poor corporate governance is an obvious culprit. Despite its minority stake TWF appoints five of the company’s nine directors. At least four of them worked in AK Party ministries while another comes from the wealth fund itself.
56 TURKEY Country Report February 2022 www.intellinews.com