High ROE stocks shine in Türkiye's BIST 100

Turkish markets uphold a positive trend in the week’s opening, with Borsa Istanbul (BIST) indicators drawing significant attention.

The BIST 100 index, which represents performance of the top 100 companies listed on the exchange, closed Monday’s session with a 1.15% gain at 9,659 points. For the first time since Oct. 1, the index briefly surpassed the 9,700-point level, demonstrating a continued appetite for upward momentum.

The index opened Tuesday with a slight decrease to 9,653 points. Analysts highlight that sustaining the rally requires holding the 9,500-point support level while breaking through the 9,700-point resistance marker.

Economic gears begin turning

On a fundamental level, the anticipated decline in inflation and the initiation of interest rate cuts have been highlighted as key potential catalysts for the Turkish stock market.

Additionally, the acceleration of industrial activity has garnered attention, as reflected in the manufacturing industry capacity utilization rate announced on Monday by the Central Bank of the Republic of Türkiye (CBRT). The rate increased by 0.4 percentage points in November, reaching 75.6%, the highest level since August, and has been positively received by market participants.

Which stocks stand out?

The expectation of interest rate cuts has already begun influencing the banking and real estate sectors following a dovish message from the Turkish central bank. Meanwhile, return on equity (ROE), a financial metric that measures a company’s profitability relative to shareholder equity, became clearer with the release of third-quarter financial statements.

The following BIST 100 companies have reported high ROE figures:

Katilim Evim: 103.55%
Ford Otosan: 71.99%
YEO Teknoloji: 61.54%
Medical Park: 60.47%
Türkiye Sigorta: 58.89%
ASTOR Enerji: 56.60%
Celebi Havacilik: 56.28%
MIA Teknoloji: 54.11%
SASA Polyester: 48.16%
Goltas Cimento: 46.83%
Limak Cimento: 44.67%
Pegasus Airlines: 41.82%
Anadolu Sigorta: 39.55%
Turkish Airlines: 37.92%

While ROE is a critical metric, it does not account for a company’s debt levels. Analysts caution, “Debt ratios must also be considered. Furthermore, a stock’s ROE might already be partially priced in, so investors should remain vigilant.”

Discounted stocks

According to analysts, combining ROE with the Price-to-Book (P/B) ratio, a financial metric that compares a company’s market value to its book value, provides a more comprehensive perspective.

Among the listed companies, Ford Otosan (FROTO), Türkiye Sigorta (TURSG), SASA Polyester (SASA), Goltas Cimento (GOLTS), Pegasus Airlines (PGSUS), Anadolu Sigorta (ANSGR), and Turkish Airlines (THYAO) are noted as being “discounted,” with P/B ratios below 3.50.