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Shares in Turkey construction and cement firms experienced a significant surge in December, driven by optimism regarding their potential involvement in the reconstruction of Syria following the recent overthrow of President Bashar al-Assad by opposition forces. This event marks a major shift in the Middle East political landscape after over a decade of civil conflict and decades of Assad’s rule.
Turkey’s Foreign Minister Hakan Fidan emphasized the nation’s commitment to facilitating the safe return of Syrian migrants and aiding in Syria’s reconstruction post-Assad. Toktamış from Trive Yatırım noted that with the regime’s collapse, the path to rebuilding Syria is becoming more evident. Yusuf Doğan, head of Global Markets Research at Info Yatırım, highlighted that Turkish companies in the construction, cement, and steel sectors are poised to seize substantial opportunities arising from this political change, thanks to Turkey’s geographical proximity and established trade ties with Syria.
On the stock market, shares of Enka İnşaat, one of Turkey’s largest construction firms, rose approximately 4%. Cement manufacturers Bursa Çimento and Oyak Çimento saw increases of 5.3% and 9.9%, respectively. Additionally, steel producer Iskenderun Demir Çelik climbed nearly 10%, while Emlak Konut, a prominent real estate developer, gained 202%. Analysts predict that key players like Enka and Emlak Konut will play vital roles in reconstruction efforts. At the same time, demand for materials from companies like Bursa Çimento and Iskenderun Demir Çelik is expected to rise significantly. The non-metal index, which includes cement firms, rose by 6.57%, while the construction index increased by 2.79%.
Despite this optimism, experts urge cations, noting that large-scale reconstructions will require time to implement and stabilize. Investors are advised to stay vigilant regarding ongoing political and economic developments.
Market analysts also pointed out that companies such as Limak Doğu Anadolu Çimento are well-positioned to benefit from new contracts due to their proximity to the Syrian border and production capabilities. The overall sentiment reflects a strong belief in the potential for growth within the Turkish construction sector as it prepares for a pivotal role in Syria’s rebuilding process.
