Buyback wave in the stock market, which saw historical discounts in dollar terms

Borsa Istanbul’s discount, especially in dollar terms, led companies to buy back shares.

While the share buyback programs of companies including Emlak Konut, Halkbank and Turkcell continued, company buybacks came to the fore again, especially with Koç Holding’s announcement of the buyback decision.

Historical lows in dollar terms in the stock market

While Borsa Istanbul has been maintaining its weak course in recent days, it has retreated to historically discounted levels in dollar terms. Only 31 of the 400 companies traded in the index have a market value of more than $ 1 billion, while the number of companies with a market value of over $ 5 billion is only four.

In March 2013, when the index was at a record level in dollar terms, 41 companies had a market value of over $1 billion and 15 companies had a market value of more than $5 billion.

The market value of the 10 companies with the highest market value at the historical peak of the index was 147 billion dollars, but now it has decreased to 49 billion dollars.

Koç Holding’s decision resonated

The decision of Koç Holding, which announced a buyback program for the first time in its history, resonated in the market. The share repurchase program was announced for the first time, considering that the company’s value in Borsa Istanbul and the current net asset value discount do not reflect the real performance of Koç Holding.

In addition, due to similar reasons, it has determined 6.8 billion shares with a nominal value of 67.6 million TL, corresponding to 10 percent of its issued capital, in its subsidiary Arçelik. The company reported to the Public Disclosure Platform that the fund allocated for the buyback is TL 2.4 billion.

Last table on repurchase

According to the data compiled by Bloomberg HT Research Unit, when the details of the share buyback programs of some companies are analyzed, it is seen that around eight companies have active buyback status. However, there are companies that have continued the share buyback program for a long time. Request

Real Estate Housing

Emlak Konut has been repeating its buyback programs for four years. While the company started the process again at the point when the buyback program date ended, it has made 140 million buybacks since 2013. While this figure corresponds to 3.6 percent of Emlak Konut’s paid-in capital, the upper buyback limit is around 1 billion TL. According to the information obtained from the company, the buyback program was applied when there was more price volatility than the market conditions.

TAV

TAV Airports Holding, on the other hand, terminated its share buyback program on March 23, 2020, and stated that the program it started in March 2020 was aimed at signaling the market. The company does not currently require a buyback; He shared that he will use the cash he has at this stage in new investments. During the pandemic, TAV Airports bought back 2 million shares, while the maximum repurchase limit set aside was 36 million.

Vakifbank

Vakıfbank, on the other hand, bought back 3.4 million shares from 3.35 TL and 76 thousand shares from 3.34 TL in the share repurchase program, which is currently in active status. With the buyback program launched on March 17, 2020, 19.7 million transactions were carried out in total, while the maximum number of allocated lots is 500 million. The repurchase amount realized so far corresponds to 0.64 percent of its paid-in capital.

BİM

While the buyback announcement shared on August 7, 2020 on the Bim United Stores front, ended on September 10, 2020, a total of 16.9 million buybacks were realized. This figure represents 0.93 percent of the company’s paid-in capital. The company had set a maximum buyback amount of up to 10 million shares in its buyback program.

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