The surge in Turkish construction stocks reflects investor optimism regarding the potential for reconstruction contracts in Syria, indicating a shift in market sentiment towards the region's recovery.
The Turkish government's active role in promoting the return of Syrian refugees and reconstruction efforts suggests a strategic approach to regional stability and economic opportunity.
If the Assad regime collapses, Turkish construction companies are likely to secure significant contracts for rebuilding efforts, potentially leading to further increases in stock prices.
The ongoing conflict and instability in Syria may delay reconstruction efforts, impacting the financial performance of Turkish construction firms in the short term.
Shares of Turkish construction companies have surged amid speculation about their role in rebuilding Syria following the anticipated collapse of Bashar al-Assad's regime. According to Bloomberg, significant gains were noted in the Turkish market, particularly among cement and steel companies. Oyak Cimento, owned by the Turkish military pension fund, saw its shares rise by 9.9% to 20.92 lira ($0.6), while Sabancı Holding's Cimsa and Iskenderun Steel (Isdemir) both jumped by 10%.
Fatih Yucelik, Chairman of the Turkish Cement Industry Association, expressed confidence in the sector's ability to adapt to changing circumstances in Syria, stating that companies are prepared to engage in reconstruction efforts once stability returns. Turkish Foreign Minister Hakan Fidan emphasized the country's commitment to facilitating the safe return of Syrians and the reconstruction of Syria. The World Bank has estimated the damage to Syrian infrastructure since the war began in 2011 at approximately $11.4 billion, with a significant portion of this damage affecting physical infrastructure.
