Anadolu Efes and ENKA shares surge on optimism of Russia-Ukraine truce agreement
Turkish Stocks Surge on Geopolitical Optimism and Monetary Policy
Shares of Turkish companies Anadolu Efes and ENKA experienced significant growth in early August 2025, driven by renewed hopes for a Russia-Ukraine ceasefire and the possibility of a meeting between U.S. President Donald Trump and Russian President Vladimir Putin.
Anadolu Efes’s shares rose more than 6% amid uncertainty over its Russian operations, which have been under temporary state control since December 2024. The company previously operated a joint venture with AB InBev in Russia, which accounted for a substantial share of the Russian beer market. However, efforts to acquire full control after dissolving this venture were blocked by Russian authorities. The potential Trump-Putin summit raises investor hopes for easing this tense situation and improving Anadolu Efes’s prospects in Russia.
ENKA’s shares also rallied around 5%, driven by the same geopolitical optimism and the broader positive investor sentiment toward Turkish stocks. Over the past three decades, ENKA has executed more than $11 billion worth of projects in Russia, including significant work in oil, gas, petrochemicals, power plants, and building projects.
The surge in these stocks is not limited to geopolitical factors. Turkey’s domestic economic environment also plays a role. In July, Turkey’s annual inflation dropped to 33.52%, and the Turkish central bank resumed interest rate cuts with a 300-basis-point reduction. These developments have contributed to positive investor sentiment toward Turkish equities.
The Turkish company Anadolu Efes, a leading alcoholic beverage producer, saw its shares climb over 6%. Shares of Anadolu Group Holding, the parent company of Anadolu Efes, also rose nearly 6%, hitting their highest level since March 20.
Other Turkish firms with significant exposure to the Russian market also gained. Koc Holding, the largest conglomerate in Turkey, and its home appliance subsidiary Arcelik each rose more than 1.5%. The benchmark BIST 100 index rose by over 1%, reaching a 2.5% weekly gain, and the liquid bank index also rose 1.9%.
Despite Turkey's friendly relations with Moscow, Anadolu Efes has been unable to reclaim control over its Russian operations. Russian regulators formally rejected Anadolu Efes's bid to acquire AB InBev's stake, blocking the transfer. Sisecam, a Turkish glass and chemicals manufacturer, also rose over 1% with total investments of $1.1 billion in Russia.
In July, consumer prices in Turkey increased by 2.06%, according to official figures. However, the Turkish central bank's interest rate cut and the drop in annual inflation may indicate a positive trend for the Turkish economy.
The details about the specific projects that caused ENKA’s share price increase were not provided in the article. Nonetheless, investor optimism about ENKA’s projects in Russia has contributed to the rally.
In conclusion, the surge in Anadolu Efes and ENKA shares is primarily due to increased hopes for a Russia-Ukraine ceasefire, anticipation of a potential Trump-Putin meeting that could ease geopolitical tensions affecting their Russian-linked business, positive investor sentiment toward Turkish equities amid Turkey’s current monetary policy and inflation trends, and the Turkish central bank resuming interest rate cuts in July with a 300-basis-point reduction.
- Following geopolitical optimism and positive investor sentiment towards Turkish stocks, shares of Turkish companies like Anadolu Efes and ENKA surged in early August 2025.
- The Turkish central bank's decision to resume interest rate cuts with a 300-basis-point reduction in July, along with a decrease in Turkey's annual inflation rate to 33.52%, have favorably impacted investor sentiment towards Turkish equities.
- Anadolu Efes, a leading Turkish alcoholic beverage producer, saw its shares climb over 6%, despite ongoing challenges with Russian authorities regarding the reclamation of its Russian operations.
- Turkey-based Koc Holding and Arcelik, its home appliance subsidiary, also experienced growth after the surge in the Turkish stock market, like the benchmark BIST 100 index that rose by over 1%.
- Russian regulator's rejection of Anadolu Efes's bid to acquire AB InBev's stake has hindered the company from reclaiming control over its Russian operations, but investor optimism remains high due to potential geopolitical events, such as a Trump-Putin meeting, that may favorably affect these cross-border business deals.
