The Koç and Sabancı families have sold shares in a period when the stock market moved toward the 100,000 index and foreigners heaped praise on Turkey. The fact that both families sold shares below value has raised questions. Despite expectations that the index will rise to 100,000 in a short while and that the foreign influx will increase, as well as some well-known investors such as Mark Mobius and Marc Faber saying interest in Turkish assets will increase, two long-established Turkish families made puzzling and massive share sales at Borsa Istanbul. Koç family members sold shares, corresponding to 4.22 percent of the holding, yesterday at TL 1.7 billion ($490 million), while Şevket Sabancı, who broke ties with the family, realized a $100 million share sale at Sabancı Holding. The stake sale by the two rooted holdings has also curbed the recent rise in the stock market. The index fell by 767 points in the first session due to sales that caused a negative perception for stock market investors. The 500 points were due to the depreciation in the shares of these two companies. Koç Holding shares fell by 6.7 percent in the first session yesterday, while Sabancı Holding shares lost 2.9 percent.
Is this a coincidence?
Koç Holding sources said that it was a complete coincidence that the sales coincided with the Sabancı Group on the same day. Pointing out that Koç Holding planned this sale months ahead, the same sources noted that the two groups did not act together. They also stressed that the shares that have recently seen a historical peak on the stock exchange keep receiving demand from foreign corporate investors, adding that the shareholders have realized a new supply in order to not disrupt the balances in the market.
Another concern was the fact that the sale of the shares of the two groups took place at reduced prices. The selling price per share of Koç Holding was determined at TL 15.87, which was 6.7 percent lower than the Thursday stock market closing. In Sabancı Holding, the sale took place at a price that was below 4 percent of the stock market price.
Mehmet Göçmen, the CEO of Sabancı Holding, complained that the share value of the stock market was discounted at least 40 percent at a meeting held on May 23. For this reason, it drew attention to the fact that Şevket Sabancı sold shares with a 4 percent discount. Sabancı Holding made no explanation regarding the issue because the sale of the shares was not made by the family members in the management and the shareholding ratio remained below the notification requirement. While the Koç and Sabancı groups became instruments in an attempted negative perception manipulation knowingly or unknowingly, foreigners have scrambled for the company's shares. The demand for Sabancı Holding's shares was 1.8 times more, and the sales of Koç Holding shares were actualized in a very short period of time.
Borsa Istanbul Stock Exchange Chairman Himmet Karadağ said yesterday that foreigners' purchases will balance sales in Koç and Sabancı holdings.
Kapital FX Research Assistant Manager Enver Erkan noted that the two groups gave the message that they "see the prices as top" of the market, and despite this, demand from foreign investors is positive. Erkan said: "It is a sign that foreign interest is continuing. Some foreign fund managers who have missed the stock exchange rallies since the beginning of the year had the opportunity to own a large number of shares at one time." Foreign investors who trust in Turkey have bought $1.5 billion in stocks and $1.7 billion in bonds since the beginning of the year.
An unprecedented sale
Although shares of some companies on the stock exchange were sold previously, none of them were made up of such a large volume and content. When Latif Topbaş sold 14 percent of his shares of BİM, a discount supermarket, he sold it to another company that he owned. Share sales in the Galatasaray football club stood at just TL 15 million, which provided funding for the transfer of players. However, the sale of shares in Koç and Sabancı holdings played into the hands of those who want to create uneasiness, in terms of both their timing and the message they convey.
