Page 23 - bne IntelliNews Turkey Outlook 2024

accounting standards, for local companies to end-2023.
As a result, Borsa Istanbul companies’ profit figures and valuation ratios are understated. Their real valuations are not cheap.
In 2024, hyperinflationary accounting rules will be applied for non-bank corporates in Turkey. Meanwhile, the banks have been exempted from inflationary accounting.
8.3 Bonds
When Turkey’s rate-cutting cycle begins (currently expected in 4Q24), double returns from the rising prices of lira papers and lira appreciation will be written.
Until then, the course of the USD/TRY pair will be observed. When the northward pull on the pair ends, the moment will be seen as signalling the beginning of portfolio inflows and the opening of the window for slowly building up lira papers.
The global markets are still in a new year mood of positivity. Throughout February the positivity may sustain.
Turkey’s five-year credit default swaps (CDS) remain below the 300-level, while the yield on the Turkish government’s 10-year eurobonds remains below the 8%-level.
Turkey generally sells eurobonds in January, aiming to take a piece of the market as new year investment plans are rolled out. Subsequent issues from Ankara usually follow in the early months of the year.
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