Brewer stocks fell sharply after the election

While the post-election stock market decline was led by bank shares, the decline in the shares of alcoholic beverage manufacturers was also notable.

After the elections, in which President Recep Tayyip Erdoğan and Nation Alliance presidential candidate Kemal Kılıçdaroğlu competed and went to the second round, shares of beer companies returned all their gains a week before the elections.

The fall in shares was due to the fact that President Erdoğan came out first in the vote and his views were strengthened that he was more likely to be elected in the runoff.

LAST WEEK’S EARNINGS DELETED

With the general stock market crashing, Turkish brewing companies also returned their profits. While the BIST 100 index rose 17 percent in the week before the election, it declined 7.5 percent in the 2 business days after the election.

Although the stock market was partially up today, it was down 3 percent from Friday’s close. The banking index, which had a premium of about 24 percent in the week leading up to the election, is down 17.95 from Friday’s close.

SHARP FALL IN BEER SHARES

Brewers, for their part, led the downward movement on the stock market. Anadolu Efes Biracılık ve Malt Sanayii returned all of its 22.5 percent gains from the previous week within three business days after the election.

Gains last week were also erased in shares of Türk Tuborg Beer and Malt Sanayii, another publicly traded beer producer. The company, which closed last week with a 6 percent gain, has lost 8 percent since the start of the week.

EFFECTIVE PRINTING ON ALCOHOLIC PRODUCTS

During the AKP rule, factors such as the ban on the promotion of spirits and the exorbitant increase in taxes on alcoholic beverages also put pressure on producers.

Commenting on the matter for Bloomberg News, the head of ICBC’s Securities Research Unit, Burak İşyar, stated that investors discounted the relaxation of rules on alcohol sales if opposition candidate Kemal Kılıçdaroğlu wins. the election, saying: “As expectations change, psychological optimism erodes.”