Turkish Forum

Tag: nasdaq

  • Nasdaq to take stake in Istanbul exchange

    Nasdaq to take stake in Istanbul exchange

    Nasdaq OMX will take a five per cent stake in Turkey’s stock exchange as part of a partnership deal providing the US firm’s technology and advisory services.

    The companies on Tuesday, said Nasdaq OMX, which operates the tech-rich Nasdaq Stock Market, would bring its most advanced suite of technologies and advisory services to Borsa Istanbul to build a “world-class capital markets hub” for the Eurasia region.

    In exchange, Nasdaq OMX will take a five per cent shareholding in the Istanbul exchange and in addition receive “a series of cash payments”.

    Nasdaq OMX has an option to increase its stake by an additional two per cent.

    The partnership also opens the possibility of Borsa Istanbul taking a minority position in Nasdaq OMX.

    “We are pleased to be working side-by-side with Borsa Istanbul as they evolve toward becoming an international hub that will attract global investors to the Eurasia region,” said Bob Greifeld, chief executive of Nasdaq OMX.

  • IBM Expands in Turkey and Poland

    IBM Expands in Turkey and Poland

    IBM Expands in Turkey and Poland – Analyst Blog

    Referenced Stocks: ACN, CAGR, HPQ, IBM, MSFT

    In accordance with its expansionary policy, IT major International Business Machines Corp. ( IBM ) recently opened a couple of new branch offices in Turkey and Poland. The new offices are expected to boost its presence in the fast growing markets of Middle East, Central and Eastern Europe.

    The two new branches in the cities of Adana and Bursa expand IBM’s growing network in Turkey. IBM already has a significant presence in the country with offices in Istanbul, Ankara, and Izmir. In Poland, the new offices are located in the cities of Krakow and Poznan that further expand the companies reach in the country. IBM currently has offices in Wroclaw, Katowice and Warsaw.

    The new branches will help IBM to penetrate the regional IT markets and win contracts from both public and private enterprises in different verticals. Further, the new offices will help IBM to support the small and medium sized business sector in the regions. Regional governments are also expected to utilize IBM’s expertise in transforming their IT capabilities going forward. This will ensure steady order flow over the long term, in our view.

    IBM and Emerging Markets

    IBM’s policy of expanding into the fast growing regions of Africa, Middle East, Central and Eastern Europe is expected to offset ongoing sluggishness in the Western European markets. According to Gartner, IT spending in the Middle East and Africa is expected to reach $244 billion in 2012, with Saudi Arabia, Turkey and South Africa accounting for nearly 35% of this spending.

    Moreover, Central and Eastern Europe are expected to spend approximately $158.0 billion on IT in 2012. Poland’s share is expected to be approximately 11.8% in 2012. According to research firm IDC, the Polish IT market will grow at a compound annual growth rate (CAGR) of 4.3% over the 2010-2015 period, achieving a value of $11.82 billion by 2015.

    We believe that IBM will continue to focus on consolidating its presence in these emerging markets in order to capture the significant growth potential going forward. Moreover, expansion into these markets will also diversify IBM’s revenue base beyond the BRICS (Brazil, Russia, India, China and South Africa) countries, which contributed 19% of its revenue in 2011.

    The company has opened nearly 100 new branch offices in non-BRIC regions during 2011. The company has also opened data centers, banking centers and research facilities in a number of African countries as well as in Singapore, Japan, Korea, Hong Kong and Vietnam.

    Moreover, IBM is targeting the academic segment through relationships with universities for imparting information technology training to students, thereby boosting its socio-economic relevance in these regions. This is evident from the fact that IBM is already collaborating with a number of Polish universities in order to develop cloud computing technology.

    Our Take

    IBM expects growth markets to contribute 30.0% of its total geographic revenue by 2015, up from 21.0% in 2010. We believe that IBM’s aggressive expansionary policy will help it to achieve this target over the long term.

    We also believe that IBM’s continued focus on global expansion will provide it with a significant competitive edge over its rivals including U.S. companies such as Microsoft Corp. ( MSFT ) , Accenture plc ( ACN ) and Hewlett-Packard Co. ( HPQ ) and also over smaller local companies operating in any given region.

    We have a long-term Neutral recommendation on the stock. Currently, IBM retains a Zacks #2 Rank, which implies a short-term Buy rating.

    via IBM Expands in Turkey and Poland – Analyst Blog – NASDAQ.com.

  • Morgan Stanley exec: Turkey is the next frontier

    Morgan Stanley exec: Turkey is the next frontier

    Morgan Stanley managing director Ruchir Sharma wants emerging market investors to start looking ahead, arguing the next big markets will not be found among the BRICs.

    In a recent Time article, Sharma points out that growth is slowing in Brazil ( EWZ , quote ), Russia ( TRF , quote ), India ( IFN , quote ), and China ( FXI , quote ).

    The host of new counties replacing the BRICs will be “emerging markets that beat the expectations and rivals in their income class.”

    Sharma highlights South Korea, Poland, the Czech Republic, the Philippines ( PHDOWD , quote ), Indonesia ( IF , quote ), and Turkey ( TUR , quote ) as the new winners in the global economy.

    These countries are playing to their strengths, whether it be Korea’s manufacturing might, Indonesia’s commodities, or Poland’s fiscal responsibility.

    The Morgan Stanley executive makes it clear that he is not bearish on the BRICS. However, he sees economic growth in these countries stabilizing, while new capital flows to the new emerging economies. Expect to see more growth in the overall world economy as a result, according to Sharma, while “investors betting big on emerging markets rising as a class will start treating them as individual stories.”

    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

    via Morgan Stanley exec: Turkey is the next frontier – NASDAQ.com.

  • S&P downgrades Turkey – time to exit?

    S&P downgrades Turkey – time to exit?

    Standard & Poor’s downgraded the sovereign credit rating of Turkey from positive to stable on Tuesday, indicating that the country is unlikely to receive either an upgrade or a downgrade within the next 12 months.

    S&P cited subsiding external demand and deteriorating terms of trade as its primary reasons behind the downgrade.

    The potential drop off in external demand stems from the poor economic health of its largest trading partner, the euro zone. A dearth of export demand could exacerbate headwinds facing the Turkish economy.

    As well, because Turkey has minimal hydrocarbon reserves, the country has to import the majority of its fuel, which strains its balance of trade.

    However, all is not doom and gloom in Turkey by any means. The country’s previously troubling current accounts deficit is improving. Central bank measures to cool the economy from overheating appear to be working , although inflation remains a concern.

    The takeaway for investors is that Turkey remains a compelling growth story for investors looking for emerging market middle class growth; however, external pressures could handicap the Turkish economy in the short-term.

    Long-term investors may wish to consider the iShares MSCI Turkey Index Fund ( TUR , quote ) on any major pullback.

    Traders will see that TUR recently broke its 50-day moving average and may now test support at the convergence of the 100 and 200-day moving averages located between 48.25 and 48.50. A failure to hold at these levels could signal a further move down. As well, traders should look for fundamental weakness in oil prices as an opportunity to go long Turkey.

    chart

    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

    via S&P downgrades Turkey – time to exit? – NASDAQ.com.