Turkey could levy a tax on stocks

Is Turkey mulling a tax on stock and crypto investments? Bloomberg reported on Tuesday that Turkey is close to imposing a transaction tax on trading in stocks and cryptocurrencies, citing official sources, who revealed that the Finance Minister discussed the plan last week. Treasury and Finance Minister Mehmet Simsek yesterday denied the news, saying only that the government is considering a “very limited” transaction tax.

The tax would come as part of a monetary tightening plan, aimed at shoring up Turkey’s fiscal position and boosting price stability, Reuters reports.

The Turkish market seesawed on the news, reversing losses yesterday after Borsa Istanbul fell to a near three-week low on Tuesday, closing at 1.8%.

Turks are taking a liking to the market: This move could reel in substantial proceeds as more Turks are investing in the stock market, which saw equity accounts surge to 8.3 mn this year, a nearly seven-fold increase since early 2020, Bloomberg said, citing the Central Securities Depository of Turkey.

But the tax could reduce volatility, analysts say: “In the short term, this sounds like pain for the equity market, but in the long term, it means a huge gain, [as this tax may] reduce volatility, enhance the investment culture and reduce speculation,” Burak Cetinceker, a money manager at Strateji Portfoy in Istanbul told Bloomberg.

ALSO IN PLANET FINANCE- Gamestop shares fell almost 40% on Friday after the company reported a 29% y-o-y dip in net sales during 1Q 2024 and shared its plan to sell more shares. Meme stock trader Roaring Kitty’s held his first livestream in three years to sway investor sentiment, but failed to stop the sell-off. (Financial Times)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.1% on Thursday on turnover of SAR 6.5 bn. The index is down 3.4% YTD.

In the green: Miahona (+29.9%), Saudi Cement (+3.8%) and Taiba (+2.7%).

In the red: Saudi Cable (-7.9%), Awpt (-7.6%) and Atheeb Telecom (-4.8%).

THE CLOSING BELL: NOMU-

The NomuC rose 1.2% on Thursday on turnover of SAR 31.4 mn. The index is up 6.9% YTD.

In the green: Miral (+14.4%), Future Care (+11%) and Mayar (+7%).

In the red: Mobi Industry (-5.5%), Lana (-5.2%) and Pan Gulf (-4.9%)

CORPORATE ACTIONS-

#1- The National Shipping Company of Saudi Arabia approved the distribution of SAR 406 m in dividends for 2023 at SAR 0.55 per share, it said in a filing to the exchange.

#2- Jamjoom Pharma approved the distribution of SAR 105 mn in dividends at SAR 1.5 per share for 2H 2023, it said in a filing to the exchange. The distribution date is set for Thursday, 13 June.

#3- Zahrat Al Waha for Trading will distribute dividends amounting to SAR 30.4 mn for 2023 at SAR 1.4 per share on Wednesday, 12 June, it said in a disclosure to Tadawul.

#4- Ladun Investment approved SAR 10 mn in dividends at SAR 0.02 per share for 2H 2023, it said in a disclosure to the exchange.

#5- Saudi Cement approved paying a SAR 191 mn dividend at SAR 1.3 per share for 1H 2024, it said in a disclosure to Tadawul. Eligible shareholders can cashout on Wednesday, 26 June.

#6- Makkah Construction and Development will distribute a SAR 247.2 mn dividend payout at SAR 1.5 per share starting on Thursday, 13 June, it said in a filing to the exchange.

#7- Salama Cooperative Ins. submitted a request to the Capital Market Authority to increase its capital to SAR 300 mn by issuing bonus shares worth SAR 100 mn, according to a disclosure to the exchange.