Turkcell Iletisim Hizmetleri (NYSE: TKC), the leading Turkish mobile phone operator and telecom company, most usually known as”Turkcell”, plummeted immensely on the New York Stock Exchange, dropping approximately 14.6% as of 22nd March.
The huge decline in stock price is not solely due to Turkcell’s incompetence. The whole Turkish currency devalued due to high levels of Inflation and plunged a staggering 15% in value. This happened as President Recep Tayyip Erdogan removed the governor of CBRT – Central Bank of Turkey’s Republic. Even after the currency’s initial recovery, the Turkish Lira was stagnant on a 12.5% tumble on its value. Hence, investors expect high inflation levels if the money supply remains rampant and the central bank does not change the monetary policy.
Turkcell Before Inflation and what the future holds
Before the sudden devaluation of the Turkish Lira, TKC’s low point in a52-weektime framewas a ballpark figure of $4.36 per stock, with $6.36 as the highest value in the 52 weeks. In those 52 weeks,thecompany’s stock trading volume soared to 443709 sharesa day, which showed a higher amount of shares traded compared to its competitors. Having a market capitalization of $5.01B and a total of 18,999 employees, TKC had intrigued confident investors who expected the company to skyrocket in the future.
However, President Erdogan’s’Authoritarian’ approach in running the economy, such as imposing capital controls and putting a cap on trading Lira, has shown a halt in investments in the Turkish based company declining the stock price of the company listed on NYSE.
TKC offered a better-than-expected outlook for the current quarter and anticipated a decent profit, however devaluation of the Turkish Lira had plummeted TKC stocks substantially, spooking out stakeholders of the company due to unstable and unfavorable conditions for investing.