Index Rise: Interest Rate Cuts Revitalize Investments

The Impact of Interest Rate Cuts on Global Markets

In global markets, the balanced messages from the U.S. Federal Reserve (Fed) create a positive perception, while concerns about artificial intelligence continue to put pressure on technology stocks. Borsa Istanbul rose with an optimistic atmosphere following the Central Bank of the Republic of Turkey's (CBRT) 150 basis points interest rate cut. Attention will turn to the inflation and employment data from the U.S. in the coming week.

Highlights from Last Week

• The Fed cut the policy rate by 25 basis points. This created a positive atmosphere in the markets.
• The CBRT reduced the policy rate by 150 basis points to 38%. This development was also well received in the markets.
• According to the CBRT's survey, the 12-month inflation expectation fell from 23.49% to 23.25%.
• Industrial production in Turkey decreased by 0.8% month-on-month and fell from 3% to 2.2% year-on-year. (Negative)
• The value of Bitcoin increased by 1.2%, while the total value of crypto assets rose by 1.3%.

New Opportunities for Investors

The persistent decline in interest rates has led investors to wonder which companies will benefit the most in this new environment. With the decrease in rates from the high levels at the beginning of the year to 38%, the process of exiting the high-interest rate effect in the market has accelerated.

During this process, companies with a manageable Net Debt/EBITDA ratio, producing operationally positive EBITDA, and maintaining free cash flow are coming to the forefront. The fact that these stocks, which were suppressed during the high-interest period, have not suffered a deterioration in balance sheet quality indicates strong resilience.

Market Forecasts and Company Developments

• Paramount Skydance (PSKY) made a competing offer after Netflix's agreement with Warner Bros.
• Disney (DIS) signed a $1 billion agreement with OpenAI.
• Pegasus (PGSUS) acquired 100% of Smartwings in Czech Republic.
• Anadolu Isuzu (ASUZU) acquired a stake from a vehicle manufacturer in Uzbekistan.
• BlackRock filed a registration statement with the SEC for an Ethereum ETF.

Investor Sentiment: Fear and Greed Index

At the end of our weekly bulletin, let's summarize some significant changes observed in certain company stocks:

• Molina Healthcare (up 9.29%) and CarrefourSA (up 17.89%) stock prices drew attention.
• Bahadır Kimya (down 8.86%) and Oracle (down 14.03%) are on investors' radar.

In the upcoming week, eyes will be on Turkey's budget balance and U.S. non-farm payroll data. These data points that shape investments will determine the direction of the markets.