Turkish construction and cement stocks surged on December 9, fueled by optimism about opportunities in Syria’s reconstruction following the fall of President Bashar al-Assad. Foreign Minister Hakan Fidan confirmed Turkey’s commitment to rebuilding Syria and facilitating the safe return of Syrian refugees.
“With the fall of the Assad regime, the reconstruction of Syria is moving forward,” noted Yakup Toktamış of Trive Yatırım. Yusuf Doğan of Info Yatırım highlighted that Turkey’s proximity and strong trade ties position its firms to play a significant role in Syria’s rebuilding process, particularly in construction, cement, and steel.
The World Bank previously estimated Syria’s war-related damage at $11.4 billion (€10.8 billion) but acknowledged uncertainties due to the scale of destruction and the political landscape. Refugee return rates will also influence demand for reconstruction efforts.
Turkish stocks reacted strongly, with major gains among construction and cement companies. Enka İnşaat rose 4.6%, while Bursa Çimento, Oyak Çimento, Afyon Çimento, and Limak Doğu Anadolu Çimento saw jumps between 8% and 10%. Steelmaker İskenderun Demir Çelik climbed nearly 10%, and real estate developer Emlak Konut gained 2%.
Bursa Çimento reached its highest share price since May 2023, and Oyak Çimento hit a peak not seen since September 2023. The non-metal index, which includes cement stocks, climbed 7.79% to a record high, while the construction index rose 3.41% to its all-time best.
Analysts believe companies like Limak Doğu Anadolu Çimento, with a production capacity of 3.6 million tons, and Bursa Çimento, capable of producing 1.4 million tons, are well-positioned to benefit from increased demand and investment opportunities in Syria.
