Market Watch Tuesday, July 26, 2016 www.sekeryatirim.com.tr Agenda

25 Monday 26 Tuesday 27 Wednesday 28 Thursday 29 Friday  CBRT, July real sector  U.S., May Case-Shiller  U.S., June durable goods  U.S., jobless claims  Germany, June retail confidence index and CUR home price index orders sales  Germany, July IFO survey  U.S., June new home sales  U.S., Fed-FOMC  U.S., 2Q16 GDP  U.S., July CB consumer announcement  U.S., July Chicago PMI confidence  U.S., July Michigan senti- ment

Outlook: Volume (mn TRY) BIST 100 The BIST100 recovered 3.4% yesterday amid strong reactionary buying, thanks to an improving political situation and supportive revelations from both the economy management and the PM. The benchmark index, thus, 8.000 76.178 84.000 closed at 74,174, where the daily rise was led by the 3.7% surge among 82.000 industrial stocks followed by a 3.2% rise in banking sector index. Total 6.000 80.000 trading volume was at TRY 3.8bn. Global equity markets were, however, 78.000 edging lower yesterday as investors now await signals from this week’s US 4.000 74.903

Federal Reserve meeting on a potential rate hike this year. Oil prices were 6.143 74.174 76.000 5.071 also southbound, which has weighed on risk appetite. There will be no 4.289 74.000 2.000 71.738

major local data announcements today. We will instead be following the 71.595 72.000 3.536 May Case-Shiller home prices index, June new home sales, and July CB 0 4.739 70.000 consumer confidence figures from the US. Moody’s held a teleconference 19-Jul 20-Jul 21-Jul 22-Jul 25-Jul on yesterday, in which the agency stated that it would closely watch macro indicators, inflation and the CBT’s actions going forward, and com- Indices (TRY) Previous Last Chg. YTD plete its review of Tukey’s ratings within 90 days. The ratings agency was BIST 100 71.738 74.174 3,40% 3,41% previously expected to deliver its rating review by the end of the first week BIST 30 88.280 91.089 3,18% 4,19% of August. Trading was mixed in the Asian markets today, and Europe is also expected to open mixed ahead of the US Federal Reserve meeting. BIST-Financial 92.777 95.866 3,33% 1,69% Meanwhile, we foresee a slightly positive opening at the BIST today. RE- BIST-Industrial 75.528 78.329 3,71% 7,93% SISTANCE LEVELS: 74,700 – 75,300/SUPPORT LEVELS: 73,500 – BIST-Services 50.126 51.591 2,92% -1,37% 72,800. Advances Declines Most Active Stocks (%) Stocks (%) Stocks Vol (TR) Money Market: KOZAA 20,00 SAYAS -4,68 GARAN 944.689.812 The Lira was positive yesterday, gaining 0.75% against the USD to close at IPEKE 19,18 IHYAY -4,17 THYAO 248.809.518 3.0325. Additionally, the currency appreciated by 0.90% against the basket KLMSN 16,40 ROYAL -3,31 AKBNK 237.831.731 composed of $0.50 and €0.50. The local fixed income markets were potive. KRSTL 16,04 EUHOL -2,70 HALKB 225.968.280 The two-year benchmark bond ended at 9.35%, 9 Bps below its previous SNKRN 13,10 -1,58 VAKBN 151.613.330 close. Money Market Previous Last Pr. Mn YE15 Domestic Headlines: O/N Repo (%) 8,12 8,13 8,57 10,28 Moody’s held a teleconference yesterday to discuss the issues re- Euro Bond (30 year, $) 167,78 167,78 170,08 163,66 garding Turkey. The agency stated that it would closely watch macro indi- Bond (Benchmark, %) 9,44 9,35 9,20 11,09 cators, inflation and the CBT’s actions going forward, and complete its re- Currency Previous Last Chg. YTD view of Tukey’s ratings within 90 days. US$ 3,0645 3,0325 -1,04% 4,01% Euro 3,3615 3,329 -0,97% 5,17% Euro/Dolar 1,0995 1,10033 0,07% 0,71% Company News: Minister of Energy Mr. Albayrak has stated that natural gas prices Commodity Previous Last Chg. YTD would be reduced significantly before winter arrives The Minister also Oil (Brent spot, $) 44,7 44,9 0,53% 20,43% noted that while arbitration procedures with and Russia had been final- Oil (NYMEX future, $) 43,1 43,2 0,23% 16,37% ized, the refunding process has yet to be completed. Thus far, the reduction Gold (Ounce, $) 1.315,6 1.319,0 0,26% 22,93% rate has not been defined. Both Tupras (TUPRS.TI; OP) and Silver (XAG, $) 19,6 19,6 0,26% 40,19% (PETKM.TI; OP) would benefit from a reduction in natural gas prices, as well as power producers such as Ak Enerji (AKENR.TI; UP), Enerji Şeker Funds Previous Last* Chg. YTD (AKSEN.TI, MP), Turcas (TRCAS.TI; N/R) and Sabanci Holding Şeker Portfoy Equity Fund 0,309465 0,318652 2,97% 6,38% (SAHOL.TI; OP) energy subsidiary Enerjisa, Trakya Cam (TRKCM TI, Şeker Portfoy Debt Instruments 0,023907 0,024016 0,46% 6,55% OP) and Anadolu Cam (ANACM TI; OP), all of which utilize natural Şeker Portfoy Money Market 1,073795 1,074079 0,03% 4,94% gas. Şeker Portfoy Mix Fund 0,018340 0,018546 1,12% 4,31% Şeker Portfoy Gold Fund 0,020524 0,020275 -1,21% 25,17% Şeker Portfoy Short T. Debt 0,012808 0,012813 0,04% 4,75%

* Prices as of 26-Jul-16

Market Watch Tuesday, July 26, 2016 www.sekeryatirim.com.tr

Turk Telekom (TTKOM.TI; MP) is to announce its 2Q16 results today. Our World Indices estimates are for TRY 3.9bn of revenues, TRY 1.3bn of EBITDA and TRY America Previous Last Chg. YTD 0.3bn of net income, largely in line with market average expectations of Dow Jones (US) 18.570 18.493 -0,41% 6,13% TRY 3.9bn in revenues, TRY 1.3bn of EBITDA and TRY 0.3bn of net Nasdaq (US) 5.100 5.098 -0,05% 1,80% income. S&P 500 (US) 2.175 2.168 -0,30% 6,09% Bovespa (Brasil) 57.002 56.873 -0,23% 31,19% (KRDMD.TI; MP) Kardemir has declared that its Board members Merval (Argentina) 15.847 15.713 -0,85% 34,58% Messrs Muthullah Yolbulan, Ahmet Zeki Yolbulan, Mustafa Yolbulan and Mexico Bolsa (Mexico) 47.537 47.130 -0,86% 9,66% Burak Yolbulan have no partnerships in Yolbulan Metal Sanayii - the steel Europe Previous Last Chg. YTD producer chaired by Mr. Ali Ihsan Yolbulan - which has recently applied for Dax (Germany) 10.147 10.198 0,50% -5,07% a suspension of its bankruptcy. FTSE 100 (UK) 6.730 6.710 -0,30% 7,49% CAC 40 (France) 4.381 4.388 0,16% -5,37% (THYAO.TI; OP) has announced that Dr. Murat Seker WSE WIG (Poland) 46.542 47.026 1,04% 1,20% has been appointed as the new CFO. Dr Seker holds a doctorate degree in Prague (Czech Republic) 891 892 0,12% -6,68% Economics from Minnesota University, and held various positions in the Budapest (Hungary) 27.852 27.950 0,35% 16,85% World Bank between 2008-2013. Lately, he has been working as the Head RTSI (Rusya) 936 931 -0,56% 22,94% of Investor Relations Department of Ziraat Bankasi, and the Head of Financial Institutions and the Investor Relations Department of Ziraat Asia Previous Last Chg. YTD Sigorta. Separately, the company has also shared a press release stating Nikkei (Japan) 16.627 16.620 -0,04% -12,68% that some 211 of its workforce (of a total of 28,769 at end-1Q16; 0.7%) Hang Seng (Hong Kong) 21.964 21.993 0,13% 0,36% have been dismissed. Shanghai Comp. (China) 3.013 3.016 0,10% -14,79% KOSPI (South Korea) 2.010 2.012 0,10% 2,60% ASX 100 Index (Australia) 5.498 5.608 1,99% 5,88% Turkdex (Set. Price) Previous Last Chg. YTD INX30 (AUGUST 16) 89,250 91,750 2,80% 3,00% USD (AUGUST 16) 3,0872 3,062 -0,82% 3,42% EURO (AUGUST 16) 3,4050 3,3664 -1,13% 4,38% GOLD (AUGUST 16) 131,03 129,38 -1,26% 26,83% Portfolio Inclusio Inclusio Last Chg. BIST Recommend. Date Price Close (%) Relative Garanti Bank 26.01.16 7,11 7,29 2,5% -2,5% Trakya Cam 30.05.16 2,22 2,35 5,9% 11,4% 28.03.16 8,02 7,65 -4,6% 4,6% Petkim 30.05.16 4,25 4,02 -5,4% -0,5% 09.11.15 19,05 15,76 -17,3% -8,6% TAV Airports Holding 30.05.16 15,01 11,35 -24,4% -20,5% Dogus Otomotiv 26.01.16 10,98 10,43 -5,0% -9,7% Portfolio Yield (yoy) -18,0% -13,4% Portfolio Yield (mom) -5,1% -1,1%

This document has been prepared by the Equity Research Department of Şeker Invest. The information and data used in this report have been obtained from public sources that are thought to be reliable and complete. However, Şeker Invest does not accept responsibility for any errors and omissions. This document should not be construed as a solicitation to buy or sell securities herein. This document is to be distributed to qualified emerging market investors only.

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