Shares in Turkish construction and cement companies surged on December 9, buoyed by expectations they will benefit from rebuilding in Syria after rebels overthrew President Bashar al-Assad.
Turkey will work for the reconstruction of Syria after Assad’s ouster and help the Syrian migrants it hosts return home safely, Foreign Minister Hakan Fidan said on December 9.
“With the fall of the Assad regime, the reconstruction of Syria is moving forward,” said Yakup Toktamıs from brokerage Trive Yatirim.
Yusuf Dogan, head of Global Markets Research at Info Yatırım, said there would be significant opportunities for Turkish companies in the construction, cement and steel sectors.
Turkey’s geographical proximity and existing trade relations give its companies an edge in Syria’s reconstruction process, Dogan added.
In a report published in February 2023, the World Bank estimated the total damage across Syria’s 14 main cities and sectors at as much as $11.4 billion (€10.8 billion) since the 2011 civil war started.
Analysts emphasized the difficulty in assessing Syria’s reconstruction needs due to the unknown scale of destruction and still uncertain political future. In addition, demand for rebuilding will depend on how many refugees dispersed worldwide return.
Shares in Turkey’s largest construction company Enka Insaat rose around 4.6 per cent. Cement companies Bursa Cimento, Oyak Cimento, Afyon Cimento, Limak Dogu Anadolu Cimento jumped between 8 per cent and 10 per cent.
Bursa Cimento shares rose to their highest since May 2023 while Oyak Cimento shares hit their highest since September 2023.
Steelmaker Iskenderun Demir Celik rose nearly 10 per cent and Emlak Konut, is one of Turkey’s largest real estate developers, gained 2 per cent.
Turkey’s non-metal index, which includes cement companies, was up 7.79 per cent and hit its highest since September 2023, while the construction index XINSA rose 3.41 per cent to its highest ever.
Limak Dogu Anadolu Cimento, with its 3.6 million ton production capacity, could benefit from new investments or higher clinker production, Baskurt said, also pointing to Bursa Cimento’s 1.4 million-ton clinker capacity.
