Shares in Turkish construction and cement companies surged on Monday, propelled by expectations that they will benefit from rebuilding in Syria after anti-regime forces overthrew longtime ruler Bashar Assad.
In one of the biggest turning points for the Middle East in generations, opposition forces seized the Syrian capital, Damascus, and Assad fled to Russia following 13 years of civil war and more than 50 years of his family's brutal rule.
Türkiye will work for the Syrian migrants it hosts to return home safely and for the reconstruction of Syria after Assad's ouster, Foreign Minister Hakan Fidan said on Monday.
"With the fall of the Assad regime, the reconstruction of Syria is moving forward," said Yakup Toktamış from brokerage Trive Yatırım.
Yusuf Doğan, head of Global Markets Research at Info Yatırım, said there would be significant opportunities for Turkish companies in the construction, cement and steel sectors following the political shift in Syria.
Türkiye's geographical proximity and existing trade relations give its companies an edge in Syria's reconstruction process, Doğan added.
Shares in one of Türkiye's largest construction companies, Enka Inşaat, rose around 4%. Cement companies Bursa Çimento and Oyak Çimento jumped 5.3% and 9.9%, respectively.
Steelmaker Iskenderun Demir Çelik rose nearly 10% and Emlak Konut, one of Türkiye's largest real estate developers, gained 2.2%.
"Major players like Enka and Emlak Konut GYO are expected to take active roles in rebuilding efforts. Additionally, firms like Bursa Çimento and Iskenderun Demir Çelik are likely to benefit from increased demand for cement and steel,” said Doğan.
However, he also urged caution. “These large-scale projects will take time to implement and stabilize. Investors should closely monitor political and economic developments,” he noted.
Türkiye's non-metal index, which includes cement companies, was up 6.57%, while the construction index rose 2.79%.
Trive Yatırım's Tokatmış said cement producers like Limak Doğu Anadolu Çimento and Oyak Çimento are poised to benefit, while Enka in construction and Kardemir in steel stand to gain from large-scale project contracts.
Serhat Başkurt, director of Algorithmic Trading at ALB Yatırım, said cement and steel would be the core catalysts for Syria’s reconstruction once the new government is formed.
"Limak Doğu Anadolu Çimento, located near the border, stands to gain directly. Bursa Çimento’s 1.4 million-ton clinker production capacity sets it apart. Enka’s proven track record in large-scale international projects positions it as a major contender,” Başkurt explained.
"Enka is the largest contracting firm in Türkiye that undertakes international projects. Iskenderun will leverage the advantage of supplying iron on the construction side."
